16. 7 Forms of Waste Types of Waste CORRECTION WAITING PROCESSING MOTION INVENTORY CONVEYANCE OVERPRODUCTION Repair or Rework Any wasted motion to pick up parts or stack parts. Also wasted walking Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes. Producing more than is needed before it is needed Maintaining excess inventory of raw mat’ls, parts in process, or finished goods. Doing more work than is necessary Any non-work time waiting for tools, supplies, parts, etc..
17. Who wants what... Customer Low Cost High Quality Availability Your Company Profit Repeat Business Growth Cash !! $ Value !!
18. Price Increase Some Profit Bigger Profit Price to Sell Cost to Produce Cost + Profit = Price 1 2 3 1 2 3
19. Cost Reduction Some Profit Bigger Profit Price to Sell Cost to Produce Price - Cost = Profit 1 2 3 1 2 3
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24. Takt Time Takt Time Volume (Daily production requirement) Time (Available seconds per working day) = Cycle Time = Actual time required for a worker to complete one cycle of his process Sets pace of production to match pace of sales.
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26. Very Frequent Change-overs 8 hours change over Right Hand change over Left Hand change over Right Hand change over Left Hand Left Hand change over Right Hand change over Left Hand change over Right Hand change over Left Hand change over Right Hand change over Left Hand change over Right Hand change over
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28. Quality Processes Yield Quality Results Consistent Process Desired Results Inconsistent Process Inconsistent Results Traditional = People doing whatever they can to get results Lean = People using standard process to get results
29. Henry Ford - Standards “ To standardize a method is to choose out of the many methods the best one, and use it. Standardization means nothing unless it means standardizing upward. Today’s standardization, instead of being a barricade against improvement, is the necessary foundation on which tomorrow’s improvement will be based. If you think of “standardization” as the best that you know today, but which is to be improved tomorrow - you get somewhere. But if you think of standards as confining, then progress stops.” Henry Ford, 1926 Today & Tomorrow
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31. Continuous Improvement A D E C B 1 min. Takt Time (1 min.) Operators A D E C B 1 min. Takt Time (1 min.) Operators Cycle Time
Time & Motion studies - Fredrick Taylor Interchangeable parts - Eli Whitney
Term “lean” coined by John Krafcik, one of the research members on Jim Womack’s MIT team for the 5 year study.
The sooner product ships, the sooner Cedar Works gets paid The faster material moves through the system Less money tied up in inventory in the system
Who decides what is valuable? ---->>> Customer
Let’s look at it from a customer’s viewpoint. Does the customer care about all these problems?? Discuss a few in depth. ROLE PLAY: pick someone for each part Customer - Subcontractor Resaw - Small parts Shipping - Assembly at West Union Walk through the role play problem example at each work station. “ Does the customer care?? ” NO!! What does the customer care about?? Low Cost High Quality Availability / On-time delivery What does Cascade care about? Profit Market share Repeat business Why are these things important to Cascade ?? Jobs - Income (Salary & Profit sharing) Employment - Future growth - Job security High inventories High scrap Wasted matl’s Absenteeism Machine downtime Late deliveries Low profit margin Long set-up time
Discussion None of these activities adds Value. Some are important or necessary, but None add value.
Discuss each Ask for examples of each type from different work areas at Cedar Works. Transition to Mercury Marine video . After video, tee up introduction of Cedar Works Production System and Lean Manufacturing. “ So what do you think it will take for Cedar Works to steadily eliminate waste, or NVA from their operations?? Discussion
What we have here is a pretty fundamental relationship. Each party wants something; the customer and Cascade. The essential ingredients that make the whole thing go are: Value to the Customer Profit to Cascade These are the two fundamentals that MUST be there for a company to grow and thrive. If only one side of this flow takes place, the company will soon be out of business; if the customer does not receive adequate value if the company doesn’t make sufficient profit As for value to the customer, what determines if the customer is getting good value? Answer: Desired product and features at low cost. As for Cascade, what determines how much profit you make? Answer: Sales Price - Cost to produce Transition to next slide
Show left hand side first , 1. Determine Cost to produce an item 2. Add profit you want 3. This gives you Price to the customer If you want to increase your profit under this system, how do you do it? --->>> Raise the price to the customer. reveal right hand side This is what most companies operated in the 60’s and 70’s, just pass the cost along to the customer. But as the markets get more and more competitive, do you think this strategy will still work?? NO!! So if Cascade wants to increase their profits now a days, how could they do it?? Discussion Transition to next slide......
Show left hand side first , 1. Determine Price customer is willing to pay 2. Subtract the Cost to produce an item 3. This leaves your profit Under this system if you want to increase your profit, how do you do it? ---->>> Lower Cost. How do you suppose you lower Cost?? Elimination of Non-Value Added Activity. Elimination of Waste !! What exactly is waste? Discussion
Show sample Standardized Work from Cedar Works Bring training manual
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