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Waste Unnecessary Necessary waste waste Value Anything that does not add value Presented by: Armando
Waste
Unnecessary
Necessary
waste
waste
Value
Anything that does not add value
Presented by: Armando Cepeda Tamez
Monterrey, Mexico September 2010
Waste ADD VALUE WASTE WASTE WORK INCIDENTAL ACTIVITIES Wait for parts Wait for handling Bend

Waste

ADD VALUE WASTE WASTE WORK INCIDENTAL ACTIVITIES
ADD VALUE
WASTE
WASTE
WORK
INCIDENTAL ACTIVITIES

Wait for parts Wait for handling Bend to pick up from floor Defect or Rework parts Carrying parts Counting stock Wait for paperwork

Assembling parts Packaging Welding Paint and plate Machining

Moving pallets. Check parts. Record production. Walk to next machine. Stock Audits. Making goods that are not required.

Waste is any activity that does not add value
Waste is any activity that does not add value
Waste Activities that absorb resources but add no value. Defined as: Muda = Waste Mura=

Waste

Activities that absorb resources but add no value.

Defined as:

Muda =

Waste

Mura=

Irregularity

Muri=

Difficulty

Muda = Waste Mura= Irregularity Muri= Difficulty Inconsistent methods Varying lot size Equipment out of place
Muda = Waste Mura= Irregularity Muri= Difficulty Inconsistent methods Varying lot size Equipment out of place

Inconsistent methods Varying lot size Equipment out of place Parts hard to fit Poor lighting Heavy lifting

The Ultimate Goal – Eliminate Waste No se puede mostrar la imagen en este momento.

The Ultimate Goal – Eliminate Waste

The Ultimate Goal – Eliminate Waste No se puede mostrar la imagen en este momento. Waste
No se puede mostrar la imagen en este momento. Waste Waste Lead Time New Lead
No se puede mostrar la imagen en este momento.
Waste
Waste
Lead Time
New
Lead Time
Reduced costs
Reduced lead time
Faster response
Improved quality
Reduced inventory
Reduced floor space
Better predictability

Lean tools help us identify and eliminate waste from our processes, leading to:

7 Wastes TIMWOOD the waste man The Toyota 7 Wastes T ransport Part moves long

7 Wastes

7 Wastes TIMWOOD the waste man The Toyota 7 Wastes T ransport Part moves long distance
7 Wastes TIMWOOD the waste man The Toyota 7 Wastes T ransport Part moves long distance

TIMWOOD the waste man

The Toyota 7 Wastes

7 Wastes TIMWOOD the waste man The Toyota 7 Wastes T ransport Part moves long distance
7 Wastes TIMWOOD the waste man The Toyota 7 Wastes T ransport Part moves long distance

Transport

Part moves long distance

1

Over production

Inventory

2 Waiting

Motion

3 Transport

Waiting

4

Over process

Stock cost, handling, loss, hide problems

180 deg body turns, pick up from floor

For; Materials, Handlers, Tools, etc.

Over production

5

Inventory

Work you cannot sell, extends lead-time

Over processing

6 Rework

7 Motion

Defects

Tighten & torque check,

Strip and rebuild, NRFT

Over Production Over production, making parts the customer will not pay for causes other wastes

Over Production

Over production, making parts the customer will not pay for causes other wastes (waiting, motion, transportation, inventory, defects)

wastes (waiting, motion, transportation, inventory, defects) Balance processes to TAKT where capacity exceeds customer

Balance processes to TAKT where capacity exceeds customer requirement, use MIN & MAX levels.

Over Production Overproduction = Extra inventory, Extra handling, Extra space to store it, Extra quality

Over Production

Overproduction = Extra inventory, Extra handling, Extra space to store it, Extra quality problems, Extra lead-time, Extra bins, Extra paperwork and Extra communication

Causes:

Inventory is viewed as security (just in case)

Process not capable or not reliable

No standard practices, lack of adherence

Poorly performing suppliers

Long setup times

Lack of workplace organisation

Seasonal peaks and troughs in demand

Poor forecasting and production planning/scheduling

Producing to speculative demand (forecast)

Departmental layouts

Lack of training

Waiting Waiting is usually the easy waste to see Don’t have operators waiting for machines,

Waiting

Waiting is usually the easy waste to see

Waiting Waiting is usually the easy waste to see Don’t have operators waiting for machines, fit

Don’t have operators waiting for machines, fit auto stops and andon to free operators for other work

Waiting Idle time – any idle time such as watching equipment, waiting for inspection, waiting

Waiting

Idle time – any idle time such as watching equipment, waiting for inspection, waiting for raw material, waiting for maintenance, waiting for paper work…

Causes:

- When two dependent activities are not fully synchronized

- Insufficient storage containers

- Poor layout

- Poor work balance

- Unreliable equipment

- Resources stretched

Transport All forms of transportation are waste ! Connect processes and eliminate material between. Deliver

Transport

All forms of transportation are waste !

Transport All forms of transportation are waste ! Connect processes and eliminate material between. Deliver direct

Connect processes and eliminate material between. Deliver direct to point of use, no decant or double handling. U-shape cells close gap between ends.

Transport Material movement and handling adds cost not value. Transportation, must be eliminated or minimised.

Transport

Material movement and handling adds cost not value. Transportation, must be eliminated or minimised.

Causes:

- Poor layout / distance between operations

- Layout in process specific work areas

- Inflexible workforce

- Batch processing

- Large lots / long changeovers

- Remote storage areas

Over processing Are we doing too much ? Task frequency ? Is touch-up or polish

Over processing

Over processing Are we doing too much ? Task frequency ? Is touch-up or polish really

Are we doing too much ? Task frequency ? Is touch-up or polish really necessary ? Are protectors really needed ? Do we need a stud & nut – would a bolt be adequate? Is all that packaging necessary?

Over processing Effort and enhancements which are ‘invisible’ to the customer. Work which is made

Over processing

Effort and enhancements which are ‘invisible’ to the customer.

Work which is made redundant by subsequent process.

Causes:

- That’s the way we’ve always done it

- Improper fixtures, tools, jigs

- No standard work

- Temporary fix that becomes permanent

- Mistakes in process

- Excessive checking

- Lack of training

- Poor layout

work - Temporary fix that becomes permanent - Mistakes in process - Excessive checking - Lack
Inventory Turn product into CASH , reduce inventory, minimize buffers Rent Rates Security Audit Handling

Inventory

Turn product into CASH, reduce inventory, minimize buffers

Turn product into CASH , reduce inventory, minimize buffers Rent Rates Security Audit Handling Degradation Out

Rent Rates Security Audit Handling Degradation Out of date Loss

Inventory Excessive raw materials, WIP, or finished goods are waste. Inventory exist as : Buffer

Inventory

Excessive raw materials, WIP, or finished goods are waste.

Inventory exist as :

Buffer between processes of dissimilar cycle times or availability. Satisfy customer demand inside the lead-time to manufacture. Security against process/supply failures.

Causes:

Acceptance of overproduction

Relying on MRP systems/forecasting

Inventory is “comforting”

Long changeovers

Buffer against downtime instead of addressing root cause

– Inventory is “comforting” – Long changeovers – Buffer against downtime instead of addressing root cause
The Irony of Inventory Organisations that suffer from material & part shortages and have a

The Irony of Inventory

Organisations that suffer from material & part shortages and have a poor delivery performance can usually be found to have excessive inventory levels.

Why ?

Inventory REMEMBER INVENTORY HIDES PROBLEMS RECENT FLOATATION HELLO HIGH STOCK LEVEL MACHINE MATERIAL ATTENDANCE
Inventory
REMEMBER INVENTORY
HIDES PROBLEMS
RECENT
FLOATATION
HELLO
HIGH STOCK LEVEL
MACHINE
MATERIAL
ATTENDANCE
SET UP
DEFECTS
AVAILABILITY
RELIABILITY
AVAILABILITY
TIME
Motion Take the work to the operator not the operator to the work Eliminate walking,

Motion

Take the work to the operator not the operator to the work

Take the work to the operator not the operator to the work Eliminate walking, use chutes

Eliminate walking, use chutes and slides. Eliminate stretching, everything within reach, one by one. Eliminate bending, everything at working height. Eliminate fiddling, orientate parts for use.

Motion Any movement of people, or machines, which does not add value to the product

Motion

Any movement of people, or machines, which does not add value to the product or service is waste and tiring. Typically, bending to pick up from floor level, turning to pick up from behind.

Causes:

- Poor work arrangement

- Poor work layout

- Poor facilities

- Lost items (searching)

- Poor standards

- Poor tool design

Defects Right first time means prevent defects Prevent defects with pokayoke and source inspection. Detect

Defects

Right first time means prevent defects

Defects Right first time means prevent defects Prevent defects with pokayoke and source inspection. Detect problems

Prevent defects with pokayoke and source inspection. Detect problems early with self inspection, successive inspection, informative inspection, pokayoke. Spend as much time eliminating root cause as on repairs

Defects Scrap / Rework from a poorly running process, set-up scrap, repair of a product

Defects

Scrap / Rework from a poorly running process, set-up scrap, repair of a product or service to meet customer requirements. Warranty, Customer returns…

Cause:

- Poor methods

- Damaged goods

- Lost goods

- Poor/no training

- Misunderstandings

- Storage concerns

returns… Cause: - Poor methods - Damaged goods - Lost goods - Poor/no training - Misunderstandings
Wastes

Wastes

Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Wastes
Lead-time defined Lead-time Order Order Lead-time Delivered Order Start to make Manufacturing Lead-time Start to

Lead-time defined

Lead-time

Lead-time defined Lead-time Order Order Lead-time Delivered Order Start to make Manufacturing Lead-time Start to make

Order

Order Lead-time

Delivered

Lead-time defined Lead-time Order Order Lead-time Delivered Order Start to make Manufacturing Lead-time Start to make

Order

Start to make Manufacturing Lead-time

Lead-time Delivered Order Start to make Manufacturing Lead-time Start to make Packed Delivery Lead-time Delivered Packed

Start to make

Packed

Delivery Lead-time

Lead-time Delivered Order Start to make Manufacturing Lead-time Start to make Packed Delivery Lead-time Delivered Packed

Delivered

Packed

Lead-time waste Order Delivered 1-5% Added Value 95-99% Waste Traditionally focus is on reducing processing

Lead-time waste

Order

Delivered 1-5% Added Value

Lead-time waste Order Delivered 1-5% Added Value 95-99% Waste Traditionally focus is on reducing processing (value

95-99% Waste

Traditionally focus is on reducing processing (value added) time
Traditionally focus is on reducing processing (value added) time
Lean focus on the Waste Order Delivered
Lean focus on the Waste
Order
Delivered
Lead-time waste Manufacturing Lead-time Start to make Packed Manufacturing lead-time • Processing • Actual

Lead-time waste

Manufacturing Lead-time

Lead-time waste Manufacturing Lead-time Start to make Packed Manufacturing lead-time • Processing • Actual

Start to make

Packed

Manufacturing lead-time

Lead-time Start to make Packed Manufacturing lead-time • Processing • Actual production time •

Processing

Actual production time

Transportation and Incidental work

Stagnation

Material

Information

The P:D Ratio P = STACKED LEADTIME = Order + Manufacturing + Delivery 6 wks

The P:D Ratio

P =

STACKED LEADTIME = Order + Manufacturing + Delivery
STACKED LEADTIME = Order + Manufacturing + Delivery

6 wks

= STACKED LEADTIME = Order + Manufacturing + Delivery 6 wks D = CUSTOMER DEMAND (Often

D =

CUSTOMER DEMAND (Often best in market)
CUSTOMER DEMAND (Often best in market)

2 wks

6 wks D = CUSTOMER DEMAND (Often best in market) 2 wks P:D Ratio = 6/2

P:D Ratio = 6/2 = 3

P:D ratio of <1 means the manufacturer can make to order. This results in very low inventories, a characteristic of lean organisations

P:D ratio of >1 means the manufacturer has to build to forecast, and supply from stock. This results in high inventories, a characteristic of traditional organisations.

Use MIFA & Process Mapping techniques to understand what the lead-time (P) is composed of
Use MIFA & Process Mapping techniques to understand what the
lead-time (P) is composed of and to highlight areas of waste
8 Producir mas de lo que el cliente necesita en ese momento INVENTARIOS TALENTO HUMANO
8 Producir mas de lo que el cliente necesita en ese momento INVENTARIOS TALENTO HUMANO

8

Producir mas de lo que el cliente necesita en ese momento

8 Producir mas de lo que el cliente necesita en ese momento INVENTARIOS TALENTO HUMANO No

INVENTARIOS

TALENTO

HUMANO

cliente necesita en ese momento INVENTARIOS TALENTO HUMANO No utilizar su creatividad e inteligencia. Por falta
cliente necesita en ese momento INVENTARIOS TALENTO HUMANO No utilizar su creatividad e inteligencia. Por falta

No utilizar su creatividad e inteligencia. Por falta de capacitación, perdiendo tiempo, ideas y oportunidades de mejora.

SOBREPRODUCCION

Todo inventario por encima del inventario minimo necesario para la produccion o distribucion

1 SOBREPROCESO 7 2 Los errores en materia de diseño tanto de obra como de
1
SOBREPROCESO
7
2
Los errores en materia de diseño tanto
de obra como de los procesos para su
construcción originan fuertes costos
producto del desarrollo de actividades
sin valor agregado.
6
3
DEFECTO
5
4
La necesidad de
eliminar o retrabajar
partes en proceso o
productos terminados
Movimiento de
los productos
que no
agregan valor
Movimiento de los productos que no agregan valor TRANSPORTE ESPERA Los tiempos en que una pieza

TRANSPORTE

de los productos que no agregan valor TRANSPORTE ESPERA Los tiempos en que una pieza debe

ESPERA

Los tiempos en que una pieza debe esperar a otra para continuar su procesamiento. Tiempos que no agregan valor .

para continuar su procesamiento. Tiempos que no agregan valor . Movimiento de de personas que no

Movimiento de de personas que no agregan valor

para continuar su procesamiento. Tiempos que no agregan valor . Movimiento de de personas que no

MOVIMIENTO

Lean Status Where do we are? Unnecessary Necessary waste waste Value 1 2 3 4

Lean Status

Where do we are?

Unnecessary Necessary waste waste Value 1
Unnecessary
Necessary
waste
waste
Value
1
2
2
Lean Status Where do we are? Unnecessary Necessary waste waste Value 1 2 3 4 months
Lean Status Where do we are? Unnecessary Necessary waste waste Value 1 2 3 4 months
3 4
3
4
months days hours minutes seconds 5
months
days
hours
minutes
seconds
5
Waste Any Questions ?

Waste

Any Questions ?