Get documents about "Problems Suppliers Footwear Industry
Description
Problems Suppliers Footwear Industry document sample
Document Sample
Lean Manufacturing
Portland State University
School of Business Administration
ISQA 552: Managing Operations and the Value Chain
Wednesday, March 8, 2006
1
Discussion Topics
1. Why the Need for Lean
2. Key Lean Concepts
3. Long-term View (Lean Enterprise)
4. Lean Application
5. Learnings, Issues and Challenges
6. Suggested Resources
2
Why The Need For Lean in the
Footwear Industry
• Historically, the footwear industry has operated as a push system
focused on economies of scale, with large batches and long
assembly lines.
– Labor-intensive manufacturing processes require
manufacturing in low-cost countries.
– Focus on departmental efficiencies.
• Customers’ increasing demands for a greater variety, more
frequent deliveries, and smaller order quantities; all at a lower
cost.
• Ongoing need to demonstrate leadership in corporate
responsibility:
So what to do? – Respect for workers
Benchmark the – Safety and ergonomics
best. – Sustainability (elimination of waste)
• Industry and shareholder pressure to improve margins and
reduce cycle time.
3
The Approach to Lean
Start with a simple definition of Lean Thinking
Deliver the most value
From your customer’s perspective
While consuming the fewest resources
Key Insights
• Focus on each product and its value stream rather than
organizations, functions, assets, and technologies.
• Ask which activities are waste and which create value.
• Enhance the value and eliminate the waste to optimize
the whole.
4
Ohno Manufacturing Model
Inputs Outputs Targets
Manpower Quantity As per customer demand
Machines Method Quality In spec.
Materials Cost Lowest total cost
Safety Zero injury
(With Profit)
Lead Time
Non Value Added Value Added
Non Value Added Value Added
“All we are doing is looking at the time line from the moment the customer gives us
an order to the point when we collect the cash. And we are reducing that time line by
removing the non-value-added wastes.” Taiichi Ohno,1988
5
Value Stream Concept
PROCESS PROCESS PROCESS PROCESS
Screen
Create Job Make Offer
Resumes & Conduct
Posting & & Negotiate
Schedule Interviews
Advertise Package
Interviews
VALUE STREAM
Product or Service
Intent or Need
Complete
Value Stream: All process steps, both VA & NVA,
required to deliver a product or service to the customer
from the point that the intent or need is identified.
6
Key Lean Concepts (to apply to Value
Streams)
Toyota Production System
A house is a Best Quality TPS
structural Lowest Cost
system that is Best Safety
strong only if High Morale
Shortest Lead Time
the roof,
pillars, and 4
Just-in-Time
foundation are (Right product, 1 3
strong. A Right Highly Jidoka (Built-in
weak link Amount, Motivated Quality)
Right Time) People • Andon
weakens the
• Takt Time • Error proofing
whole system. • Continuous • Safety • In- station
Flow • Teamwork quality
• Pull System • Flexible • 5 Why’s
• Quick Workforce
Changeover
2 Operational Stability
• Leveled Production
• Standardized Work
• 5S and Visual Management
• Total Productive Maintenance
7
Key Lean Concepts (continued)
“Brilliant process 1 Highly Motivated People
management is
our strategy. • Safety – concern for the worker has to be foremost to make the
We get brilliant
factory an environment where workers can contribute ideas.
results from
average people • Teamwork – a team environment in the plant enables the team to
managing brilliant manage itself, including solving most problems on their own.
processes. Management needs to see itself as there to support the teams.
We observe that
our competitors • Flexible Workforce – workers need to be multi-skilled to be
often get average
redeployed when improvement occur.
results from
brilliant people
managing broken • Questions to consider:
processes.” – How do your incentive systems need to change?
– What are effective ways to involve all employees in the
Mr. Cho, business of improvement?
President Toyota
It’s the people who bring the system to life: working, communicating,
and resolving issues together. TPS encourages, supports, and in
fact demands employee involvement.
8
Key Lean Concepts (continued)
“Losers have 2 Operational Stability
tons of • Level production (heijunka) – an advanced topic, but the simple
variety. explanation is to do a little bit of everything, every day, throughout
Champions the day. Make all varieties – all models and all sizes – so that we
are very very good at changing sizes and models.
take pride in
just learning • Standard Work – we need to identify and document the Best
to hit the Way to safely make a quality part, every time within Takt Time.
same old Then use that standard method by every operator, every time.
boring
winners." • 5S and Visual Management – A stable factory is well organized,
clean, and disciplined. It is clear and obvious what is supposed to
-Vic Braden happen, and what is happening.
• Total Productive Maintenance (TPM) – is basically about
maintenance of machines – and moving away from being
reactionary, to become preventative.
The idea is to move away from “just in case” behavior, and create a
boring factory, where the same thing happens every day – no
surprises, no accidents, no crisis.
9
Key Lean Concepts (continued)
3 Built-in Quality (Jidoka)
The focus is
quality at the • Andon Systems – basically a way for the operator to call for
source. The
help. If something is preventing them from making a quality part,
earlier an issue
they should activate the andon – which lights up a board showing
is found, the
less expensive which operator needs help. The team lead is then alerted to
it is to fix. come and provide support. The key idea is to empower the
operator to stop the line and call for help.
If you have to
throw • Error Proofing -- putting in processes that eliminates the
something possibility of mistakes – a good example of error proofing is on
away, better to computers – the jacks for plugging in various cables are all
do so before different sizes and shapes – and they make them so that it is
you add a
impossible to plug in to the wrong place, or to put in upside down.
bunch of stuff
(value) to it.
• 5 Why – getting to root cause analysis when a problem arises,
not just addressing symptoms.
10
Key Lean Concepts (continued)
4 Just-in-Time (Right product, right amount, right time)
JIT, one of the • Takt Time – the speed at which material needs to move through
pillars of TPS, that value stream. The concept represents a shift from
departmental silos in the plant, to thinking about Value Streams –
is a set of
the process to make a product from start to finish.
principles,
tools, and
techniques • Continuous Flow – inventory and information move through the
value stream at takt time. Continuous flow makes problems
that allows
visible because when a problem arises.
production and
delivery of
products in • Pull System – the customer ultimately creates a pull. So when
the customer wants a finished pair, we make one. But customer
small
is also thought of as “the next process.” So when final assembly
quantities with
needs a part, the upstream process produces one.
short lead
times.
• Quick Changeover -- If you want flexibility, we have to come up
with ways to reduce the changeover time, so that it’s possible to
change the line quickly and easily.
11
Long-term View (Lean Enterprise)
• Most every company implementing lean has the long term goal of
establishing a lean enterprise. Why?
Toyota began
it’s innovative – Diminishing returns from shop floor benefits. Can you save
your way to prosperity?
journey in
1945…. so – Manufacturing represents less than one third of the total cycle
time for a product.
clearly there is
no finish line. – Harvesting the benefits on the shop floor requires new ways of
thinking about logistics, production planning, order
management, purchasing, etc.
• What is a lean enterprise?
– Lean thinking applied throughout the entire organization (not
just manufacturing)
– Continuous improvement as a way of doing business
• Performance measurements drive improvement
• Everyone involved in kaizen activities
– Extended lean efforts with suppliers, customers, and partners
12
Long-term View (Lean Enterprise)
Although only a The Business Case for Lean Enterprise
relatively small
amount of costs
have actually
been expended
by the time a
product has
been designed,
a relatively large
amount of costs
(about 80
percent) have
been committed.
Thus, the
greatest
potential for cost
management
occurs during
the planning and
Source: OMR. OPTIMAL TARGET COSTING PRACTICES. June 2002
design.
13
Lean Problem Solving Application
Portland State University
School Of Business Administration
Wednesday, March 8, 2006
14
Standardized problem solving
“Not 5 Whys to determine root cause
knowing the ?
difference
?
between
opinion and ?
fact makes it ?
difficult to ?
make good
decisions”
Marilyn Vos
Savant
• Problems are opportunities to learn
• Hiding problems undermines the system
15
Planning and Measurement
Plan Identify the problem
Analyze for root cause
Formulate countermeasures
Do Develop implementation plan
Communicate plan
Execute plan
Check Monitor progress of plan
Modify plan if necessary
Monitor results
Act Evaluate results
Standardize effective countermeasures
Start PDCA again
16
“A3” Proposal/Report Format
PLAN PLAN
PLAN
An A3 lays out an entire plan, large or
small, on one sheet of paper.
It should be visual and extremely concise.
Implementation Plan
It should tell a story, laid out from upper Do
left-hand side to lower right, which anyone
can understand.
PLAN
PLAN
Check
17
Applying PDCA and One Page Report Writing
Exercise instructions:
1. Break into teams
2. Each team pick a topic from work or from school
3. For each topic, work through as much of the A-3
format as you can. Defining the business problem is
a good place to start.
4. Use visuals if possible. Use 5 why analysis to
understand root cause. Note where you are making
assumptions vs using facts.
5. Brainstorm recommendations that address root
cause.
6. Summarize your ideas in the A-3 format.
18
Title: ________________ Recommendation What is your proposed
countermeasure(s)?
Background
•
• •
• •
• •
•
Current Situation Where do we stand? Where we need
to be?
•
•
• Plan What activities will be required for implementation
• and who will be responsible for what and
when?
•
Goals What is the specific change you want to •
accomplish now?
•
••
•
••
•
••
•
Analysis What is the root cause(s) of the problem?
Follow - up How we will know if the actions have the
What requirements, constraints and
impact needed? What remaining issues can be
alternatives need to be considered?
anticipated?
•
•
•
•
•
•
•
•
•
•
19
Learnings, Issues and Challenges
Some people • Physical changes are relatively easy; behavioral changes are
imagine that difficult; cultural changes can take decades.
Toyota has put • Implementations must have the right expectations and right
on a new set incentives.
of clothes, so • Although trade-off’s still exist between cost, time and quality, TPS
they go out is a comprehensive approach to achieving improvements in all
and purchase three.
the same outfit
• Lean is a very people-centered initiative which makes it difficult to
and try it on.
predict results.
They quickly
discover that • Applying lean concepts in administrative areas is even more
they are much difficult.
too fat to wear • Lean must be viewed as a long-term investment by the
it. organization.
Shigeo Shingo
(1989)
20
Five Suggestions for You Today
1. Learn the System, including the dirty details.
2. Choose a place to begin your own project. Implement it
as an integrated system.
3. Use the Plan Vs. Actual to lead implementations of your
Future States.
4. Learn Standardized Work (“SWS”). Implement it by
focusing on the operator. Eliminate waste in each
operator’s job!
5. Ensure clear ownership at the right level(s).
21
Closing Thoughts
“From the end customer’s standpoint none of the information
processing steps creates any value. To test this assertion,
just ask yourself whether you would be less satisfied with a
product if it could be ordered and delivered to you with no
management of production and logistics information.
Obviously you would not be less satisfied. Indeed you would
be more satisfied if the cost savings from eliminating
information acquisition and management could be passed
along to you.
Yet in the modern era of automated information management,
most managers have implicitly accepted the notion that
information is good, more information is better, and all
possible information is best. In fact, information for control
of operations is necessary waste. Managers ought to be
minimizing the need for it rather than maximizing its
availability.”
– Dan Jones and James Womack
22
Suggested Readings
Other
Suggestions Lean Thinking : Banish Waste and
Create Wealth in Your Corporation by Learning to See Version 1.3 by Mike
Tour a lean James P. Womack, Daniel T. Jones Rother, 1999.
1996.
facility.
See
www.lean.org, The Machine That Changed the World : The Toyota Way: 14 Management
The Story of Lean Production by James Principles From The World's Greatest
www.ame.org, P. Womack 1991. Manufacturer by Jeffrey Liker 2003.
www.crms.uky
.edu/lean.
The Gold Mine: A Novel of Lean
Toyota Production System: Beyond Turnaround by Freddy Balle, Michael
Large-Scale Production by Taiichi Balle. 2005.
Ohno. 1988
Decoding the DNA of the Toyota Learning to Lead at Toyota by Steven J.
Production System by Steven J. Spear, Spear. Harvard Business Review
H. Kent Bowen. September 1, 1999 Article, May 2004.
23
Related docs
Other docs by gmt16623
Problems and Complications Associated with the Nonsurgical Management of Intervertebral Disc Disease
Views: 24 | Downloads: 0
