Lean Six Sigma - Yellow belt program

Module 2

prepared for

17-18 October 2008 zumtobel lighting division ZDL Curtici – lean 6 sigma
Agenda

Day 1 Day 2

Introduction - objectives, expectations Recap day 1

Recap module 1 Using visuals

Changeover and Changeover Time SMED - grownd floor workshop

Traditional Setup
SMED – definitions
Lunch break Lunch break

SMED process steps Turnaround – business simulation

Ideea for improvment (part 2)

Simulation debrief Closing session and feedback

Wrap up

2
Learning Objectives

Î Understand basic principles in SMED

Î Understand how to perform a SMED
Î Using visuals to improve changeover
Î Turnaround – business simulation (part2)
how to set goals and enhance teamwork

3
 Single Minute Exchange of Die
(SMED)

17-18 October 2008 zumtobel lighting division ZDL Curtici – lean 6 sigma
Introduction to SMED

• Changeover and Changeover Time

• Traditional Setup
• SMED
• SMED Process Steps
• Ideas for Improvement

5
Changeover

Î Changeover is the total process of converting a

machine or line from running one product to
another

Changeover Time
Î Changeover time is the total elapsed time
between the last unit of good production of the
previous run, at normal line efficiency, to the first
unit of good production of the succeeding run, at
full line efficiency.

6
Changeover time

(Run down period)

Run up period
Set up
period

OUTPUT

TIME
7
Traditional approach

Setup is given and fixed

Therefore,
Î Use highly skilled setup personnel
Î Minimize product variety
Î Combine lots
Î Make large batches

8
New approach

Î Setups CAN be improved!

Î Small lot production REQUIRES short
setups
Î Setup time reduction of 90% and more is
common

9
Changeover improvement

Copyright Suiko-WCS International

10
Why Reduce Changeover Time?

Î Faster response to customer

Î Changeover more frequently (smaller lots)
Î More time for production (reduce
overtime)
Î Increase capacity with low/no investment

11
Benefits of setup reduction

Î Better quality
Î Lower cost
y Less inventory
Î Better flexibility
Î Better worker utilization
Î Shorter lead time and more capacity
Î Less process variability

12
Classification of setup activities

Î Type 1
y Gathering, preparing, and returning tools, fixtures,
etc.
Î Type 2
y Removing previous setup, mounting next setup on
machine
Î Type 3
y Measuring, calibrating, adjusting
Î Type 4
y Producing test pieces, further adjustment until
parts are good

13
Quick Changeover
Rapid Set-up
One-Touch Set-up
SMED

14
Definitions

SMED
Î Single Minute Exchange of Die
refers to a goal of reducing setup time to a
single digit time (or less than 10 minutes)

OTED or OTC
Î One Touch Exchange of Die
Î One Touch Changeover
refers to a goal of reducing setup time to
less than one minute (less than 100 sec)

15
History
Î The concept arose around 1950-1960, initiated
by Shigeo Shingo (1909-1990) and Taiichi Ohno
(1912-1990), brought in US by Norman Bodek.
Î Shingo was contemplating Toyota in their inability
to eliminate bottlenecks at car body-moulding
presses
Î The bottlenecks were caused by long tool
changeover times which drove up production lot
sizes
Î The economic lot size is calculated from the ratio
of actual production time and the 'change-over'
time
Î If change-over takes a long time then the lost
production due to change-overs drives up the
cost of the actual production itself
Î Toyota's additional problem was that land costs in
Japan are very high and therefore it was very
expensive to store economic lots of its vehicles

16
 Changeover time / Prod time ratio

Changeover time Lot size Process time per item Operation time Ratio
8 hours 100 1 min 5.8 min 480%
8 hours 1,000 1 min 1.48 min 48%
8 hours 10,000 1 min 1.048 min 5%

The economic lot size is calculated from the ratio of

actual production time and the 'change-over'
time; which is the time taken to stop production
of a product and start production of the same, or
another, product.
17
 Economic Lot size / Economic order quantity

Economic order quantity is that level of inventory that minimizes the total of
inventory holding cost and ordering cost. The framework used to determine
this order quantity is also known as Wilson EOQ Model.
The model was developed by F. W. Harris in 1913. But still R. H. Wilson is
given credit for his early in-depth analysis of the model.

Underlying assumptions Variables

1.The ordering cost is constant.
2.The rate of demand is constant
=>
Q = order quantity
Q * = optimal order quantity
D = annual demand quantity of the product
P = purchase cost per unit
C = fixed cost per order (not per unit, in
addition to unit cost)
H = annual holding cost per unit (also known
as carrying cost) (warehouse space,
refrigeration, insurance, etc. usually not related
to the unit cost)
TC = total cost function
18
BASIS: Time is the Biggest Waste

Î Waste can be visible,

like inventory or
defective units (scrap
or rework), but waste
of available
production time is
too often hidden and
ignored….it is truly
buried treasure !!!

19
Critical Applications for SMED

Î Processes making a high variety

of end items
Î Processes using high cost components
(greater benefits of inventory reduction)
Î Capacity bottleneck operations
y avoids purchase of new equipment
y avoids overtime
y better customer order fill
y quicker response time

20
SMED methodology

Î Identify internal and external steps

Î Convert internal steps to external
Î Improve all aspects of the setup operation
Î Abolish setup!

21
SMED process

Step 1 – Observe and record the current process.

Step 2 – Separate internal and external activities.
Step 3 – Convert internal activities to external
activities.
Step 4 – Make internal activities flow (streamline)
Step 5 – Make external activities flow (streamline)
Step 6 – Document internal and external procedures
to be repeatable and reproducible.
Step 7 – Pursue perfection (return to step 1)

22
Step 1 – Observe and record the current
process.

Î What is the average time per changeover?

Î What activities are performed and what is the time for
each?
Î How often are changeovers performed?
Î Who is involved in the changeover process?
Î What PN (part number) is run before and after
changeover?
Î How much does time vary between PN types?
Î Video tape the current changeover or record it in detail
on an observation sheet

23
Step 1 – Observe and record the current
process.
Look for:
Î shortages, mistakes, inadequate verification of equipment causing delays and can be
avoided by check tables, especially visual ones, and setup on an intermediary jig
Î inadequate or incomplete repairs to equipment causing rework and delays
Î optimization for least work as opposed to least delay
Î unheated molds which require several wasted 'tests' before they will be at the
temperature to work
Î using slow precise adjustment equipment for the large coarse part of adjustment
Î lack of visual lines or benchmarks for part placement on the equipment
Î forcing a changeover between different raw materials when a continuous feed, or
near equivalent, is possible
Î lack of functional standardization, that is standardization of only the parts necessary
for setup e.g. all bolts use same size spanner, die grip points are in the same place
on all dies
Î much operator movement around the equipment during setup
Î more attachment points than actually required for the forces to be constrained
Î attachment points that take more than one turn to fasten
Î any adjustments after initial setup
Î any use of experts during setup
Î any adjustments of assisting tools such as guides or switches

24
Step 1 – Observe and record the current
process.

Clearing material of old job

Changing jigs (large jigs need two operators)
Loading jigs ready to set + get Material
Change Discs
Untighten Allen Screw on binary decoder
Looking for tools
Finding tools
Changing Electrode
Setting Weld Heat level
Water Off/ Water On
Check on Teach box if program is stopped
Sending Jigs in
Adjusting Decoders

Activities
Check Electrode Height Jig 1
Adjusting Weld heat settings Jig 1
Adjusting Electrodes alignment
Check Welds on Panel
Adjusting Weld heat settings Jig 2
Check Welds on Panel
Called away to sorting out problem with other m/c
Reload Jigs
Getting Material
Fasten screws on back side of decoder
Check bolts on electrodes
Putting Teach box away
start running machine start of run-up
Getting Material
Unloading jig
Reload Jigs

A brief thought … Fasten screws on jig

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00 65.00 70.00 75.00 80.00 85.00 90.00

time units

The use of the SMED

methodology to address Total elapsed changeover time
run-up losses ?

25
Step 2 – Separate internal and external
activities

Internal Setup:
Elements of a setup that are done
while the process is shut down

External Setup:
Elements of a setup that are done offline
while the process is operating

26
Step 2 – Separate internal and external
activities

Typical Time Allocation of Changeover Activities

Actual
Preparing Change
Machine for over
Change
over 5%
Preparation 15%
and
Function
Checks

30% Running
First Part
and
Adjustments

50%

27
Step 2 – Separate internal and external
activities

Post-it note method:

- anyone can see
- if mistakes, easy to correct
- employee engagement
(they know better)
28
Step 3 – Convert internal activities to
external activities

Î There is any step we can eliminate? Why improve if not

needed?
Î Are there things we can do while the machine is running
so we don’t waste time once it has stopped?
Methods
Î Pareto types of activity by time spent
Î Make a “Dance Chart” by carefully observing the
changeover process and recording details of each
operator’s walk pattern
Î Construct SWCT (Standardized Work Combination
Table) showing each elemental activity and the related
time, including walk and wait time (see example)

29
Step 3 – Convert internal activities to
external activities

3 6
3 6

Supply Table 5 Bench

4
2 1
5 4

2
1
Tool Die Paper
Storage Storage Storage

Dance Chart Example 30

Step 3 – Convert internal activities to
external activities
C/O in C/O in Goal for Manual Walk
Part No.: Line: Standardized Work Seconds Minutes C/O
Auto Wait
Part Name: Date: Combination Table 570

No. Process Name

Manual Auto Wait Walk 50 100 150 200 250 300 350 400 450 500 550 600
Time Time Time Time

1 Walk to tool crib 5

2 Pick tools 5 5

3 Remove nuts & washers 85

4 Remove plate 5 15

5 Pick plate 5 15

6 Install plate 5

7 Replace nuts & washers 110

8 Plug in heater - set timer 15

9 Pick paper 5 10

10 Store & pick paper 5 10

11 Make adjustments 140

12 Pick tools 10 5

13 Drop tools 5 5

14 Wait for heater 45

15 Make first part 60

Totals 455 45 70 Total C/O Time = 570

31
Step 4 – Make internal activities flow

Applies for Step 5 – external activities too

Î Look for 7 waste, mainly simplify activities and
reduce movements
Î Are there any special tools to be designed to
reduce movements?
Î Separate activities into
Essential & Auxiliary
Î Serial vs parallel operations
(see pit crew – racing team)
Î Eliminate adjustments
intuition into facts
32
Step 4 – Make internal activities flow

Examples

Guide block
Only last turn centering fixture
tighten the bolt
33
Record improvements – sample log

34
Step 5 – Make external activities flow

Î Proper Arrangement and Orderliness

Î Carts Reserved for Changeovers
Î Material Flow Racks
Î Go-No Go Gauges
Î Simplify Adjustments
Î Dedicated setup equipment and carts
Î Continuously Collect Ideas to Improve
Setup!

35
Step 5 – Make external activities flow

Avoid Time Lost Looking for or Verifying Correct Items:

– Color Coding
– Number Coding

36
Step 6 – Document internal and external
procedures

Î Write down the new internal and external

procedures.
Î Fill in an action sheet to ensure that the
new procedures can be achieved.
Î Review the whole activity to determine
“What went well?”, “What went badly?”
and three changes that the team would
make before the next SMED activity.

37
Step 6 – Document internal and external
procedures

Î Write down the new internal and external

procedures.
Î Can you show an excellent changeover so new
employees can watch and learn ?

38
 Step 7 – Pursue perfection (return to step 1)

Î SMED -> less than 10 min

Î OTC -> less than 100 sec
Î Changeover goals:
y Target 50% reduction first time
y Continuous Improvement Target 20% per year thereafter
Î Continue to check benchmark for a number of cycles
(Control phase in DMAIC)

6 6
Changeover Changeover
Time Time
(Hours) 4 (Hours) 4
2 2

0 0
Original Best Later Original Best Later
changeover changeover changeover changeover changeover changeover
Time Time Time Time Time Time
(1989) (1991) (1994) (1989) (1991) (1994)

Changeover gains are not necessarily easily sustained …

39
The SMED System - Results

Ref 1: Modern Approaches to manufacturing improvement – the Shingo System, * After one
Shigeo Shingo, ISBN: 091529964x SMED exercise
40
EXAMPLE

41
C/O Time for XX to YY (2 oper.)

C/O XX to YY
SEQ MINUTES
1 Get Lift Truck for YY Mat'l 4.2
2 Move & Stage YY Material 9.0
3 Find & Stage YY Tooling 13.6
4 Walk to Cabinet for Wrenches 1.8
5 Remove Mounting Bolts 3.2
6 Remove XX Tooling 1.2
7 Clean Mounting Surfaces 5.9
8 Mount YY Tooling to Mach 3.7
9 Tighten Mounting Bolts 2.9
10 Remove XX Trfr Gripper 2.1
11 Install YY Trfr Gripper 3.6
12 Run Trial Parts & Adjust 15.5
13 Move XX Material to Store 5.3
14 Move XX Tooling to Crib 3.0
75.0

42
Pareto of C/O Time for XX to YY

MINUTES

Run Trial Parts & Adjust

Find & Stage YY Tooling
Move & Stage YY Material
Clean Mounting Surfaces
Move XX Material to Store
Get Lift Truck for YY Mat'l
Mount YY Tooling to Mach
Install YY Trfr Gripper
Remove Mounting Bolts
Move XX Tooling to Crib
Tighten Mounting Bolts
Remove XX Trfr Gripper
Walk to Cabinet for Wrenches
Remove XX Tooling

0.0 5.0 10.0 15.0 20.0

43
External vs Internal Event Analysis

MI NUTES
Remove XX Tooling 1.2
Walk to Cabinet for Wrenches 1.8
Remove XX Trfr Gripper 2.1
Tighten Mounting Bolts 2.9
Move XX Tooling to Crib 3.0
Remove Mounting Bolts 3.2
Install YY Trfr Gripper 3.6
Mount YY Tooling to Mach 3.7
Get Lift Truck for YY Mat'l 4.2
Move XX Material to Store 5.3
Clean Mounting Surfaces 5.9
Move & Stage YY Material 9.0
Find & Stage YY Tooling 13.6
Run Trial Parts & Adjust 15.5
75.0

44
Separating Internal/External Events

INTERNAL MINUTES EXTERNAL MINUTES

Remove XX Tooling 1.2 Walk to Cabinet for Wrenches 1.8
Remove XX Trfr Gripper 2.1 Move XX Tooling to Crib 3.0
Tighten Mounting Bolts 2.9 Get Lift Truck for YY Mat'l 4.2
Remove Mounting Bolts 3.2 Move XX Material to Store 5.3
Install YY Trfr Gripper 3.6 Move & Stage YY Material 9.0
Mount YY Tooling to Mach 3.7 Find & Stage YY Tooling 13.6
Clean Mounting Surfaces 5.9
Run Trial Parts & Adjust 15.5
38.1 36.9

Separating external tasks yields 49% reduction

45
Improving Internal Events

INTERNAL BEFORE AFTER

Remove XX Tooling 1.2 1.2
Remove XX Trfr Gripper 2.1 2.1
Tighten Mounting Bolts 2.9 0.3
Remove Mounting Bolts 3.2 0.3
Install YY Trfr Gripper 3.6 1.4
Mount YY Tooling to Mach 3.7 0.9
Clean Mounting Surfaces 5.9 0.7
Run Trial Parts & Adjust 15.5 2.5
38.1 9.4

C/O improvement 75 min - 9.4 min = 65.6 min (87% red'n)

46
 CHANGEOVER RECORD

DATE SHIFT FROM TO TIME (SEC) COMMENTS

47
 DATE:
Line Dance Chart
Number:
Part Number:

WALK
PATH WITH
PART
WALK PATH
WITHOUT
PART

48
 CHANGEOVER CELL__________ SHIFT_____

AVG. GOAL

18.0

16.0

14.0

12.0

10.0
MINUTES

8.0

6.0

4.0

2.0

-
LAST MO
1996

YTD

10

13

17

18

19
14

20

21

22

24
11

12

16

23

25
15
5

9
6

8
4
2

3
1

DAY

LAST
1996 YTD MO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

C/O #1
C/O #2
C/O #3
C/O #4
C/O #5
C/O #6
C/O #7
C/O #8
AVG. 16.3 14.7 13.2
GOAL 18.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0

49
 CHANGEOVER CELL_89_ SHIFT_1st_

AVG. GOAL

18.0

16.0

14.0 X
X X
12.0

10.0
X
MINUTES

X
8.0

6.0

4.0

2.0

-
LAST MO
1996

YTD

10

13

14

17

18

19
11

12

15

16

20

21

24
22
4

23

25
6

9
1

DAY

LAST
1996 YTD 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
MO

C/O #1 12 14 9 11 13
C/O #2 9 11 7 12 12
C/O #3 14 8 11 7 9
C/O #4 16 15 8 9 14
C/O #5
C/O #6
C/O #7
C/O #8
AVG. 16.3 14.7 13.2 12.7 12 8.75 9.75 12
GOAL 18.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0

50
Summary
IN ORDER TO

REDUCE LEAD TIME

IT IS NECESSARY TO

REDUCE LOT SIZE

WHICH IN TURN

REDUCES WORK IN PROCESS

TO DO THIS, YOU MUST

REDUCE CHANGEOVER TIME

51
Summary
Remember that
all improvements
begin and end
with the Five S’s!
• Sort
• Set in order
• Shine
• Standardize
• Sustain

52
 Visual control

17-18 October 2008 zumtobel lighting division ZDL Curtici – lean 6 sigma
Visual control
Î Visual control is a technique employed in many
places and contexts whereby control of an
activity or process is made easier or more
effective by deliberate use of visual signals
Î Signals:
y Color, light, sound, sizes, teams uniform…
y Charts, drawings,
Î Visual control communicates very effectively the
information needed for decision making
Î Maintains order and allows instant audit
Î The placement in plain view of all the tools, parts,
production activities, and indicators of production
system performance, such that the status of the
system can be understood easily and quickly

54
Why needed?

Î Three reasons for using visual management

tools:
y To make problems visible
y To help workers and management stay in direct
contact with gemba (the workplace)
y To clarify targets for improvement
Î Production boards and schedule boards are
examples of a visual factory.
Î Before the start of a shift, the department
supervisor uses the boards for a short discussion
on planned activities for the day and any specific
problems.
55
Purpose
Î Andon: A visual control device in a production area. Typically a lighted
overhead display, giving the current status of the production system.
Î Jidohka is defined as a device that stops a machine whenever a
defective product is produced. It is autonomation, that is, a form of
automation with human elements attached.
Î When an equipment malfunction occurs, a light turns red or a signal
comes on to indicate a problem. The operator or maintenance
personnel must respond to find the source of the problem and to
resolve it.
Î The kanban system provides material control for the factory floor. The
cards control the flow of production and inventory.
Î The visual factory places an emphasis on setting and displaying targets
for improvement. The concept is that various operations have a target
or goal to achieve. The standard time is initially set higher than the
target.
Î However, as the operation is performed, the operator tries to beat the
old time, until the goal is met.
Î In summary, the visual factory enables management and employees to
see the status of the factory floor at a glance. The current conditions
and progress are evident and any problems can be seen by everyone.

56
Kanban
Î T. Ohno was the originator of the Kanban method.
Î Kanban is a method of material flow control in the factory. It is intended
to provide product to the customer with the shortest possible lead times.
Inventory and lead times are reduced through Heijunka (leveling of
production).
Î The order to produce parts at any one station is dependent on receiving
an instruction, the kanban card.
Î Only upon receiving a kanban card will an operator produce more
goods. This system aims at simplifying paperwork, minimizing WIP and
finished goods inventories.
Î Due to the critical timing and sequencing of a kanban system,
improvements are continually made. A kanban system can not have
production halted by machine failures or quality problems. Every effort
is made to eliminate causes of machine downtime, to eliminate sources
of errors in production, promoting production efficiency and improving
quality.
Î Kanban systems are applicable in repetitive production plants, but not
in one-of-a-kind production operations.

57
Kanban
If a Kanban system is used, with cards indicating the need to resupply,
the method of feeding an assembly line could be achieved using
the following process:
1. Parts are used on the assembly line and a withdrawal kanban is
placed in a designated area.
2. A worker takes the withdrawal kanban to the previous operation
to get additional parts. The WIP kanban is removed from the
parts pallet and put in a specified spot. The original withdrawal
kanban goes back to the assembly line.
3. The WIP kanban card is a work instruction to the WIP operator to
produce more parts. This may require a kanban card to pull
material from an even earlier operation.
4. The next operation will see that it has a kanban card and will
have permission to produce more parts.
5. This sequence can continue further upstream.

58
Kanban

59
Kanban – pull approach

Î Take item only when needed

Î Used in multi-stage production
Î Initially does not look that good
Î Wide variety of implementations possible

60
Kanban – pull approach

Î Location is running short of material

Î Notify previous location
Î Material only flows when needed
Î Not when you think it will be needed
Î Work is pulled through facility

61
Kanban – pull notification

Î Cards
y easily damaged, easily lost, cheap
Î Computer Signal
y Can cover large distances, more complex
Î Kanban Squares
y marks painted on floor, simple, cheap, less
easily damaged
Î Slots for items
y place on shelves, simple, cheap
62
Kanban benefits

Î Simple
Î Cheap
Î Gives good control
Î No look ahead
Î Can reduce inventories
Î Reduces lead times
Î Usually manual

63
Poka - Yoke
Î Shingo lists characteristics of poka-yoke devices:
y 100 percent inspection is possible
y Devices avoid sampling for monitoring and control
y Poka-yoke devices are inexpensive
Î Mistake-proofing can be accomplished through a control method
by preventing human errors or by using a warning mechanism to
indicate an error.
Î Some of the control methods to prevent human errors include:
y Designing a part so it can not be exchanged by mistake
y Using tools and fixtures that will not load a mis-
positioned part
y Having a work procedure controlled by an electric relay
y A signaling mechanism warns about possible sources of
error. Root cause analysis and corrective action is
required before work resumes.

64
Poka - Yoke

65
Poka - Yoke

66
Turnaround

Î Business Simulation
Part 2

67
Closing session

Î Did we reach our objectives?

Î What did you learnt?
Î What is still to learn?
Î How do you intend to do it?
Î What help do you need?

68