This document discusses principles of continuous manufacturing improvement. It begins by explaining why continuous improvement is important due to continuous changes in customer demands, technology, and competition. It then outlines key stakeholders in improvement and drivers of improvement such as waste reduction, cycle time reduction, yield improvement, and people involvement. Specific types of waste are defined and examples are provided. The importance of cycle time reduction is explained, and concepts of horizontal and vertical cycle times are introduced. Finally, approaches to cycle time improvement are discussed, including clarifying supply chain structure, process mapping, benchmarking, and implementing an action plan.

1. Continuous Manufacturing Improvement Basic principles of Continuous Manufacturing Improvement Dave Zwarts

3. Make the connections/relations between several “parameters” transparent

5. “Stakeholders” Shareholders Competition Government Production Customers Suppliers Employees

6. Competition Market Performance Suppliers Customers Product Realisation Process Distrib. Why? How? What? Key Improvement Drivers “Model” Market Technology Product Creation Process

8. Delivery

9. Price /Costs

10. Innovation

12. Performance: Customer (2/2) Innovation time to market / time to volume market price; market share learning curve; rate of improvement Service product support at the customer customer satisfaction; =loyalty !

14. Processes

15. Means

16. Systems

18. Flow / JIT / SMED / Lay-out / ..

19. Zero defects / Cpk / ..

20. TPM / OEE / ..

22. 1. Waste reduction ‘Added-Value’ versus ‘Non-Added-Value’ if it doesn’t add value, it is waste !

23. Examples of “Waste”

24. Examples of “Waste”

25. Examples of “Waste”

26. Examples of “Waste”

27. Examples of “Waste”

28. Examples of “Waste”

29. Examples of “Waste”

30. Examples of “Waste”

31. Examples of “Waste”

32. Examples of “Waste”

33. Examples of “Waste”

34. Examples of “Waste”

35. Examples of “Waste”

37. Waiting Time

38. Transportation

39. Processing

40. Inventory

41. Motion

42. Product Defects+ not using People’s talent

43. Overproduction

44. “Waste related with time” waiting on material watching the machine run production of defect products (scrap) looking for tools repairing the machine producing needless products ..............etc.

46. “Waste related with time” Where are the losses? What is the available time? How much of this time is really used? ‘Total Productive Maintenance’ (TPM): ‘Overall Equipment Effectiveness’(OEE)

47. “Waste related with time” dimension = [time] closed Company (open) Time available No production

48. “Effective use of time” AT = Available Time OT = Operational Time Standstill Speed PT = Production Time ET = Effective Time Quality Dimension = [time]

49. “The six big losses” Standstill losses caused by: adjustments machine defects Speed losses caused by: many little stops lower set point speed Quality losses caused by: producing defect products (‘yield’) start up PARETO !

50. “Overall Equipment Effectiveness” Definition of ‘Overall Equipment Effectiveness’: O.E.E. = Availability x Performance x Quality (deviation: low = 0,4 | high = 0,8)

51. Processing (e.g. drilling a hole)

52. Inventory

53. Motion Move  Work

55. repair costs: labour + material

56. scrapping defect products

57. problems with planning and supply

59. House keeping a place for everything & everything in its place the first step to improve the factory a ‘must’ for ‘manufacturing excellence’

60. 2. Cycle time (reduction) 1. Concept Why cycle time reduction What is cycle time How to measure cycle time 2. Approach General conceptfor management ofcycle time improvement What? Why? How?

62. Market introductions

64. “Messner” Conventional mountaineering strategy is based on massive amounts of support, including extra oxygen, thought essential for climbs over 25,000 feet. Men such as Sir Edmund Hillary and Chris Bonington relied on hundreds of guides who carried food, oxygen and other supplies; an American expedition to climb Everest in 1963 included 900 porters trudging up the mountain with 300 tons of equipment, Messner argues that under this strategy, the slowest man sets the pace. His goal is speed of execution. Although assisted by guides up the base of the mountain, Messner usually makes the final assault by himself, or with one other person, in a single day. He scaled the north face of Everest solo, without oxygen - one of the most severe mountaineering challenges ever attempted.

65. . Stage One: Baseline Material flow Customer service Material Control Sales Purchasing Production Distribution Stage Two: Functional Integration Material flow Customer service Materials Management Manufacturing Management Distribution Stage Three: Internal Integration Material flow Customer service Materials Management Manufacturing Management Distribution Stage Four: External Integration Material flow Customer service Internal Supply Chain Suppliers Customers

66. 10 9 Composite Performance Intermediary steps are transitional only 8 Extended Enterprise 7 6 STEP 7 5 Integrated Supply Chain 4 3 2 STEP 4 Functional 1 STEP 1 Informal Time Supply Chain management: progressing through four distinct stages of maturity

68. Agile : “quick in movement : nimble”Hi “Lean” works best in high volume, low variety and predictable environments. “Agility” is needed in less predictable environments where the demand for variety is high. AGILE Variety / Complexity LEAN Lo Lo Hi Predictability

69. Total cycle time SUPPLIERS INTERNAL CUSTOMERS Attack non-value adding time & complexity. Apply flow concepts Partnership sourcing and synchronized supply Vendor managed inventory & continuous replenishment Total Cycle time (Days)

73. Time to market

74. Price premium

75. Asset utilization

76. CTR has a positive effect on:

77. Cash flow

78. Receivables / payables

79. Non-quality cost

81. Horizontal & Vertical CT ‘Horizontal cycle time’: The time of activities, like production planning, procurement, production, order processing, transport, etc. ‘Vertical cycle time’: The time that an item spends on stock, keeping working capital and not generating income yet. This can be expressed in days of sales.

83. Vertical CT: 87 days

84. Total integral CT: 97 days48 time 21 18 Transport to customer transport to DC Order processing production: 20 1 3 4 distribution center time Raw materials Finished product warehouse Horizontal, vertical and total integral cycle time can be expressed graphically:

86. Production is planned by discrete organizational units with batch feeds between discrete systems.

88. Replenishment of all echelons is driven from actual sales/usage data collected at the customer interface.

89. Production is planned across functional boundaries from vendor to customer, through highly integrated systems, and minimum lead-times.

91. Uses performance measures that are market-facing and process related, e.g. time-to-market, cost-to-serve, customer retention

92. Reduces complexity, but not necessarily variety

93. Encourages cross-functional, team-based working

95. General concept for cycle time improvement A. Clarifying supply chain structure B. Mapping of processes C. Benchmark study D. Logistic assessment, based upon structural evaluation of time aspects of all processes E. Action plan F. Measure and control

98. Cycle time reduction on the production floor /contents Setup time reduction Product oriented layout Flexible skills Leveled/mixed production KANBAN

100. Shorter product life cycles

101. Ever decreasing batch sizes

102. Need to reduce integral cycle time

105. adjustments

107. transfer dies

108. selecting tools

110. Reduce internal setup examples

111. Reduce internal setup examples

112. Reduce external setup examples

113. Reduce external setup examples

114. Contents Setup time reduction Product oriented layout Flexible skills Leveled/mixed production KANBAN

115. Process oriented layout

117. transportation waste

118. accumulation of in-process inventory

119. multiple handling of material

120. long production lead time

121. difficult to trace back causesof defects

123. maximum use of machine capacity; esp.. large machines with high capacity

124. people can be trained fast:operators, maintenance

125. breakdown of one machine can easily be “solved”

126. specific tools can be stored together

129. maximum use of machine capacity; esp.. large machines with high capacity

130. people can be trained fast:operators, maintenance

131. breakdown of one machine can easily be “solved”

132. specific tools can be stored together

133. efficiency of individual operations can be optimizedAlso a production line can be a clear area of responsibility Do we need them in the first place? Increasing diversity, shorter life cycles! Machines can be simplified; operators can broaden their skills Machines in a flowline urge to solve reasons of breakdowns Efficiency of the total process can be optimized!

135. transportation waste

136. accumulation of in-process inventory

137. multiple handling of material

138. long production lead time

139. difficult to trace back causesof defects

140. flow of materials is hard to standardizeA production line for one product group can be easily planned Transportation eliminated Inventory in a production line is usually very low Short lead-times Tracing back errors is quite easy! Flow of materials is standardized automatically!

141. Model for comparison

143. synchronized processes (to avoid accumulated inventory)

144. short change over times

145. reliable processes:

146. breakdowns

147. product quality

148. flexible skills …to developed flow

149. Flow production Example

150. Contents Setup time reduction Product oriented layout Flexible skills Leveled/mixed production KANBAN

151. Flexible skills Multifunctional skills Skill Development Job Rotation Multiprocess handling

152. Flexible skills/ skill development

153. Flexible skills/ job rotation

154. Contents Setup time reduction Product oriented layout Flexible skills Leveled/mixed production KANBAN

156. Leveled production

158. Leveled/mixed production

159. Leveled/mixed production

160. Synchronized production

161. Contents Setup time reduction Product oriented layout Flexible skills Leveled/mixed production KANBAN

162. Kan Ban “Supermarket concept”

163. Kan Ban Kan Ban concept throughout the factory

166. use the tray or container as Kan Ban card

168. Leveled/mixed production may be necessary to prevent up swing effects in the supply chain

169. Production processes need to be controlled in order to eliminate potential disruptions

170. Infrequently ordered items (specialties), hardly fit within a Kan Ban systemFabrication Final-assembly Sub-assembly

171. Total Quality Control / Total Productive Maintenance Total Quality Control (Total Quality Management) Total Productive Maintenance (Total Productivity Management)

172. TPM versus TQC

173. TQC

174. TQC

175. TQC /identifying defects at the source...

176. SPC: Statistical Process Control

177. SPC

178. Visual Control

179. Visual Control

180. Visual Control

181. TQC / TQM = The right person for the right job

182. TQC / TQM = Controlling the process

183. TQC / TQM = Make sure that you don't have to repeat it

184. TQC / TQM = Only possible with support from the management

185. TQC / TQM = Control your work

186. TQC / TQM = Listen to the customer