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TECHNIQUES
APPLIED TO PRODUCT
PACKAGING
What Is Lean?
Lean adaptations for process industry challenges
Lean Tools for packaging operations
1) Standard Work
2) Point Of Use Storage
3) 5S
4) SMED changeover improvement
5) Package To Order
6) Value Stream Mapping
7) Product Wheels
TPS
BEST QUALITY * LOWEST COST
SHORTEST LEAD TIME * BEST SAFETY * HIGH MORALE
The Toyota JIDOKA
JUST-IN-TIME
Production RIGHT PART, RIGHT
HIGHLY MOTIVATED (BUILT IN QUALITY)
Automatic Stops
System is often
PEOPLE
AMOUNT, RIGHT
TIME Andon
depicted as a Takt CONTINUOUS Person-Machine
Separation
Continuous Flow IMPROVEMENT
house Pull Systems Error Proofing
Quick Changeover In-station Quality
WASTE ELIMINATION
Integrated Logistics Control
5 Whys
OPERATIONAL STABILITY
LEVEL PRODUCTION - STANDARDIZED WORK
VISUAL MANAGEMENT
TOTAL PRODUCTIVE MAINTENANCE (TPM)
TPS
MEETING CUSTOMER NEEDS
WITH THE HIGHEST QUALITY IN THE SHORTEST TIME
PEOPLE
ENGAGEMENT
FLOW & QUALITY
CONTINUOUS
IMPROVEMENT
AGGREGATED
DEMAND
DEMAND
(MONTHLY)
SALES & MANAGEMENT CUSTOMER FORECASTS
CUSTOMER
CAPACITY FORECAST SERVICE
(MONTHLY) REPS ORDERS
MASTER PRODUCTION
RAW MATERIAL SCHEDULE (MONTHLY)
ORDERS (MONTHLY)
Frequency 12 Trucks/Day
SHEET CALENDARING WRAPPING Lot Size 648K Sq Ft
SLITTING CHOPPING
FORMING BONDING PACKAGING
6
(3) 5
(3) 5
Transp time 3 Days
(4) (4) 6 LABELING 4
Invtry 6.3M lbs Effective Invtry 2500 R Effective Invtry 3650 R Invtry 4000 Invtry 322M sq Ft
Capacity 11.8 8.9 Effective Effective Effective
SUPPLIER 2 Capacity 10.3 29
Material Flow
Days 16 Days 12.6 Days 21 Capacity
Days 7 Capacity Capacity 200 Days 42
TAKT 9.5 TAKT 8.3
# # # TAKT 7.2 # TAKT 24 TAKT 120
Order Lead Frequency 1 Car/Day 6 (Master Rolls/Hr) 50 200 1000 # SKUs 2,000
1 Week SKUs SKUs (Master Rolls/Hr) SKUs (Bonded Rolls/Hr) SKUs (Slit Rolls/Hr)
Time (Cut Rolls/Hr)
Lot Size 140K lbs Utilization 80%
# SKUs 4 Utilization 93% Utilization 70% Utilization 83% Utilization 60%
Transp time 7 Days Lead time 15 Min Lead time 17 Min Lead time 10 Min Lead time 10 Min Lead time 8 Min
Yield 87% Yield 87% Yield 98% Yield 100% Yield 100%
Reliability 90% Reliability 98% Reliability 95% Reliability 98% Reliability 98%
UPtime 73.6% UPtime 61% UPtime 69% UPtime 98% UPtime 98%
# SKUs 50 # SKUs 200 # SKUs 1000 # SKUs 1800 # SKUs 2000
Batch size 1 roll Batch size 1 roll Batch size 1 roll Batch size 1 Slit Roll Batch size 1 Cut Roll
EPEI
C/O time
C/O loss
9 days
1 hr
2 Rolls
EPEI
C/O time
13 days
45 Min
EPEI
C/O time
7 days
5 Min
EPEI
C/O time
7 days
0
Data boxes
EPEI
C/O time
7 days
0
KEY
K = 1,000
M = 1,000,000
C/O loss ~0 C/O loss ~0 C/O loss 0 C/O loss 0 B = 1,000,000,000
Avail time 168 hr/wk Avail time 168 hr/wk Avail time 168 hr/wk Avail time 168 hr/wk Avail time 168 hr/wk
Shift schd 3x8x7 Shift schd 3x8x7 Shift schd 3x8x7 Shift schd 3x8x7 Shift schd 3x8x7
3 M 42 Days
16 Days 12.6 Days 21 Days 7 Days NVA Time = 99 Days
15 Min 17 Min 10 Min 10 Min 8 Min VA Time = 73 Min
Timeline
Process Products
Process Operations Automotive and house paints
Chemical reactions Foods and beverages
Physical transformations Personal care products
Mixing, blending Synthetic fibers
Extrusion Sheet goods
Sheet forming Films
Glass and ceramics
2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 14
LEAN THINKING FOR PROCESS OPERATIONS
Sub-
systems
Assemblies
Sub-
assemblies
Finished Products
Material Flow
Adapted from
Synchronous Manufacturing
Umble & Srikanth, 1990
BONDED ROLLS
SHEET GOODS 200 TYPES
MANUFACTURING
PROCESS MASTER ROLLS = 50 TYPES
STANDARD WORK
LEAN PRINCIPLE:
Standardized tasks and processes are the foundation for
continuous improvement and employee empowerment.
Every task should be standardized
Every task should be examined for improvement possibilities
No improvement should be implemented until tested, validated,
authorized, documented, and communicated
The improvement becomes the new standard
Why Standard work?
Variation can cause defects
Variation causes confusion
Variation inhibits Continuous Improvement
Five S, 5S
1 Sort (Seiri)
2 Straighten (Seiton)
3 Shine (Seiso)
4 Standardize (Seiketsu)
5 Sustain (Shitsuke)
5S changes
Removed all unnecessary tools and equipment
Cleaned floor, walls, equipment surfaces
Standardized on a pegboard design for tools
Standardized on an operator interface
Not only is the area cleaner and less cluttered
. Operators can easily move from machine to machine as needed
CHANGEOVER IMPROVEMENT
CHANGE CHANGE
PRODUCT A OVER
PRODUCT B OVER
PRODUCT C
PRODUCT A Perform
INTERNAL TASKS
30
2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED
Fluid Change From: xxx To: xxx
North West Line Change Over W/Fluid Cleanout 6/30/2011 Start: xxxxam Complete: xxxxam Total Time: x hrs xx min
Bottle Change: XX oz To XX oz
20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min9:
Operator 1
Case
Remove Erector Set
Labels Labels
& to Line Drop Packer Set Up Up, Set Up
Cartons Carton
Date Coder
Cap
Operator
Sealer,
Remove Caps, Bottles,
Lead
Cap
Caps Cartons Detect Mettler Scale and Fluid
From Delivered to or Labeler Set Up Cleanout
Line Line VideoJ
et Set
Up
Mechanic 3 Mechanic 2 Mechanic 1
Capper/Filler Changeover
Capper/Filler Changeover
Unscrambler
Changeover
Technician
Lab
Lab Testing
FINISH TO ORDER
PACKAGE TO ORDER
Requires the ability to store materials prior to the F-T-O or Pkg-T-O Point
PRODUCT WHEELS
Results
Inventories were reduced
Many low volume products now Make-to-Order
Brought structure & discipline ended the chaos
FLOW LIMITATIONS
IN A CEREAL PLANT
SHAPE MANUFACTURING
STORAGE
SILOS
PACKAGING
FLAKE MANUFACTURING
SHAPE MANUFACTURING
The VSM
shows the
packaging area at STORAGE
75% Utilization SILOS
THROUGHPUT INCREASES
IN A SALAD DRESSING PLANT
BN #2 BN #1 BN #3 BN #4
BOTTLE
BOTTLE BOTTLE CASE
HOMOGENIZER FILLING
CAPPER LABELER PACKER
MACHINE
SURGE 300 Bot/Min 500 BPM ACCUMULATING 360 BPM
EFF CAPACITY 60 GPM EFF CAPACITY EFF CAPACITY EFF CAPACITY EFF CAPACITY 33 cases.min
TANK 400 BPM 400 BPM BOTTLE 400 BPM
TAKT 75 GPM TAKT TAKT TAKT TAKT 34 cases/min
CONVEYOR
UTILIZATION 125% UTILIZATION 133% UTILIZATION 80% UTILIZATION 111% UTILIZATION 101%
OEE 90% OEE 85% OEE 94% OEE 82%
OEE 73%
Salad Dressing NOTE: All capacities and Takt are relative to 24 oz bottles,
Bottle Filling Line which is the primary size run on his line
WAREHOUSE
PALLET PALLET
SHRINK CASE
STRETCH LABEL
WRAP PATTETIZER
WRAPPER PRINTER
TUNNEL
APPLICATOR
EFF CAPACITY 122 cases/min EFF CAPACITY 100 cases/min EFF CAPACITY 224 pallet/hr EFF CAPACITY 170 pallet/hr
TAKT 34 cases/min TAKT 34 cases/min TAKT 26 pallet/hr TAKT 26 pallet/hr
UTILIZATION 28% UTILIZATION 34% 12%
UTILIZATION UTILIZATION 15%
OEE 90% OEE 94%
OEE 92% OEE 76%
SMED
To speed up changeovers
Faster changeovers = more production time, shorter campaigns,
less inventory
Finish-To-Order, Package-To-Order
Reduce finished goods inventory
Improve fill rates, service levels
Product Wheels
Optimize campaign size, production sequence
Level production to match takt within reasonable time periods
Reduce inventory, increase predictability
Productivity Press
May 2009