LYSIPPE - Formation Lean Management, Réduction des frais généraux

Lean manufacturing (english)

Saturday 3 February 2007 by emmanuel

Lean, why?

Lean [1] brings answers to the problems of the company.

Essential problems:

- How wil we satisfy our customers in terms of lead times, quality, costs, safety?

- How will we improve our profits and satisfy our shareholders?

- How will we perennialize our company by developing competences of the people who make it up?

Shopfloor problems :

- How can we have on our racks the products which the customers want, when they want, without ruining us in stocks of finished products which are depreciated? Our objective of service rate [2] = 100%.

- How can we smooth [3] our requirement of direct labour throughout the year?

- How can we produce a rush order with equipment which is saturated?

- How can we organize us so that shopfloor management can carry out background tasks and stop "firefighting”?

- How can we stop ruining us in CAM software [4] whose plannings are never respected?

- How can we reduce our lead times?

- How can we reduce our requirement in working capital [5]?

- How can we motivate our personnel with quality without making more controls?

- How can we reduce our costs?

Lean Manufacturing in brief:

“Lean” is both simple and complicated.

  • Simple, because the physical organization of the company is clarified, the physical installation does not require “great upheaval”, the “solutions” are physically almost “ridiculous” (to be convinced one can think that Kanban [6], simple bit of paper, replaces with him thousands of lines of CAM code).
  • Complicated, because firstly, “Lean” requires a transformation of people’s mentality, of their “vision” before being able to concretize itself on the shopfloor. However “human” material is not easy to work. Secondly, “Lean” has very vast implications so one does not know generally by which end to start. Thirdly “Lean” requires time and patience - several years, an investment without fault of a “Team”, and a “rigour” which is not usual for us.
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The Toyota house
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- The “Toyota house” is the ideal to be reached. It is composed of:

    • A roof,
    • Two pillars,
    • A base.

The Roof symbolizes customers satisfaction, and its criteria [7], which allows the perenniality of the company. Without roof, the walls and the house take water.

Pillars, Just in time [8] and Jidoka, support the roof. They must be of equal force, if not the roof is wobbly. However Jidoka [9], more subtle than Just in time, is very often neglected.

Just as a house could not hold upright if it is built on sand, the “Toyota House” cannot hold in an environment where the equipment of production is not “stable” [10] and “available”. [11]

In which activities one uses the techniques of Lean Manufacturing?

  • in the workshops,
  • in logistics big boxes,
  • in administrative services,
  • in healthcare services (hospital), and more generally everywhere there is succession of tasks (with value added or imperative) to bring a service or a product to a customer.

Which are the advantages of Lean Manufacturing?

- The results of the efforts made on the floor are seen in the countable dashboard of the company. Your cash improves, your requirement in working capital decreases because you decrease the quantities of raw material not financed by your customers by accelerating their flow in your company.

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Physical and financial cycle compared
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- The results are perennial, because the people become Masters of the improvement of their stations, in the interest of all the company.

- On the shopfloor one notes important profits on the surfaces, shortened lead times, fall of rejection rate, fall of stocks and work-in-progress, and fall of direct labour (this one is then reinvested in the continuous improvement , the deployment of Lean Manufacturing and the increase in activity which rises from the improvement of the company).

- Lean Manufacturing makes it possible to progress according to its capacities. It is an iterative technique. Each time one progresses of a step, one knows that one can still progress and improve the situation.

[1Lean = name given by a researcher of Massachussets Institute of Technology to indicate the System of Toyota Production. One meets also the expression “Toyota Way”.

[2Service rate = a Number of delivered orders in conformity/a Number of received orders

[3smoothing is the systematic fight against the variation, a plague described by Edward Deming in the 1950’s. Variation is an enemy who generates monstrous wastings in the company. Smoothing the requirement in direct labour simplifies the tasks of HR and production departments.

[4CAM= Computer Aided Manufacturing. We often hear this note:: “plannings are used to justify the delays”.

[5the requirement in working capital is the money for which the company has to finance the raw materials necessary to produce and whose financing is not covered by the supplier credit and the payments of the customers.

[6Kanban = plasticized paper label indicating inter alia the process supplier, the quantity, the reference of product, the destination. This document is used either to take a quantity of components in a stock, or to give a work order to a process.

[7Criteria of customer satisfaction : Quality, Costs, lead times, which if they are not reached returns the problematic perenniality of customer relationship.

[8Just in Time: A process should produce only to satisfy a need for its customer. The shorter the loop of communication between the process and the customer, and reactivity of the process supplier the minus the system wastes resources. Kanban of taking away which returns with an empty vat is used to say to the supplier “I need this and I take it on your racks”. The kanban of production which is removed of full vat - carried - is transmitted to the starting point of the process supplier like a work order. The process supplier only manufactures to replace what was taken. When the process supplier is faster to react and need to transmit only one product at the same time, the communication by Kanban is replaced by balls of color which correspond to the required reference.

[9Jidoka, sometimes translated Autonomation, or automation with human judgement, is a whole of techniques. Jidoka is firstly the will to use only one operator to control several machines. Secondly production of a defect, or the possibility of producing a defect is immediately announced by the automatic machine which stops instantaneously. Thirdly for manual operations, the operators who encounter a “problem” (defect, variation, impossibility of following standard of work) must immediately warn their leader while pulling on a cord. The stop of the team is done at the end of the operating cycle.

[10Stable or robust equipment does not fall broken down between two planned maintenance actions.

[11Equipment available is equipment which produces a good part as soon as one presses on the run button. The causes of non-availability were removed (tiny breakdowns, stops, long changes of production, random cycle times,…)

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