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LEAN MANUFACTURING

TECHNIQUES
APPLIED TO PRODUCT
PACKAGING

APRIL 24, 2012


PETER L. KING
LEAN DYNAMICS LLC
AGENDA

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

2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 2


ORIGINS OF LEAN

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THE EVOLUTION OF LEAN

What is known as Lean Manufacturing or Lean


Production today is based heavily on manufacturing
principles developed by Toyota in the 1950s 1980s

Toyota Production System

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THE EVOLUTION OF LEAN

Eli Whitney, Honore Blanc


- Interchangeable parts

Frederick Taylor - Scientific management

Henry Ford - Flow, velocity

Toyota - Mapping, Focus on Waste, Kaizen

MIT IMVP - Lean (1989)


Good summary of principles & benefits
Created high level of awareness
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THE ESSENCE OF LEAN

So what is TPS what is Lean:


An intense focus on elimination of waste
An intense focus on the final customer and what he values
Manufacturing at a rate equal to customer demand ~ TAKT
A focus on the worker and the value he can bring
A strong value for FLOW

Lean philosophies can be summed up in 5 key principles

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LEAN FOCUS

1. DEFINE VALUE IN Lean focuses on Value


CUSTOMER TERMS

Value is defined by the customer


2. MAP THE VALUE
STREAM
Lean focuses on flow
3. MAKE WORK FLOW
Flow is at the pull of the
4. FLOW AT THE PULL
customer
OF THE CUSTOMER

Lean focuses on waste


5. RELENTLESSLY
PURSUE PERFECTION Waste is eliminated by a
relentless pursuit of perfection

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THE TPS HOUSE THE PRODUCTION SYSTEM

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)

Attributed to Fujio Cho, a disciple of Taichi Ohno


THE TOYOTA PRODUCTION SYSTEM (TPS) HOUSE

TPS
MEETING CUSTOMER NEEDS
WITH THE HIGHEST QUALITY IN THE SHORTEST TIME

PEOPLE
ENGAGEMENT
FLOW & QUALITY
CONTINUOUS
IMPROVEMENT

STANDARDIZATION & STABILITY

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LEAN IS NOT ABOUT COST REDUCTION!

Lean, world-class athletes


getting into shape:
Dont try to lose weight
Try to lose fat
Try to build muscle

Lean, world-class manufacturing operations


Dont try to cut costs
Try to cut waste
Try to build muscle
A trained, capable workforce
Standardized, disciplined processes
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SEEING THE FLOW
VALUE STREAM MAPPING

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VSM COMPONENTS

AGGREGATED
DEMAND
DEMAND
(MONTHLY)
SALES & MANAGEMENT CUSTOMER FORECASTS

Information Flow OPERATIONS


PLANNING
PROCESS (QUARTERLY)

CUSTOMER
CAPACITY FORECAST SERVICE
(MONTHLY) REPS ORDERS
MASTER PRODUCTION
RAW MATERIAL SCHEDULE (MONTHLY)
ORDERS (MONTHLY)

RAW MATERIAL PRODUCTION


ORDERS (MONTHLY) SUPERVISOR
ORDER
SUPPLIER 1 Frequency 1.8 Cars/Day CURRENT GRANTS CUSTOMERS,
Lot Size 140K lbs INVENTORIES DISTRIBUTORS
Order Lead
1 week Transp time 7 Days DAILY PRODUCTION
Time
SCHEDULE (WEEKLY) Quantity/time 230M Sq Ft/Mo
# SKUs 6
TAKT 320K Sq Ft/Hr

MATERIAL Lead time Exp 7 Days

SCHEDULE UPDATES (DAILY) SCHEDULE UPDATES (DAILY) RELEASES

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

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LEAN THINKING
FOR PROCESS OPERATIONS

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PROCESS VS ASSEMBLY

Parts Manufacturing and Assembly


Automobiles Aircraft
Cell phones Medical instruments
Computers Consumer electronics
Power tools Lawn mowers
Appliances

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
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LEAN THINKING FOR PROCESS OPERATIONS

Lean was developed for discrete parts manufacture


Process operations are different
They behave differently from discrete parts operations
Lean does apply to process operations
Often with even more benefit
But must be adapted to recognize the differences

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15
A PROCESS

Systems Part nos.


or SKUs
Material Flow

Sub-
systems

Assemblies

Sub-
assemblies

Parts Adapted from Synchronous Manufacturing


2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED Umble & Srikanth, 1990 16
V PROCESS

Finished Products

Material Flow
Adapted from
Synchronous Manufacturing
Umble & Srikanth, 1990

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EXAMPLE OF A V PROCESS

PACKAGED ROLLS = 2000 TYPES

CUT ROLLS = 1800 TYPES

SLIT ROLLS = 1000 TYPES

BONDED ROLLS
SHEET GOODS 200 TYPES
MANUFACTURING
PROCESS MASTER ROLLS = 50 TYPES

RAW MATERIALS = 6 TYPES

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MANAGING COMPLEXITY

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LEAN TOOLS

STANDARD WORK

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LEAN TOOLS 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

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LEAN TOOLS POUS

POINT OF USE STORAGE

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LEAN TOOLS POUS

Point of use Storage is storing materials as close to the


location where they are used as is possible
Tools needed for product changeover
Changeover parts: filters, screens
Materials for future campaigns: labels, caps
Tools needed for minor repairs
Repair parts: fuses, lamps, etc.
And located within easy reach
Benefits:
Eliminates searching for tools, parts, materials
Reduces downtime
Speeds product changeovers
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LEAN TOOLS 5S

Five S, 5S

1 Sort (Seiri)

2 Straighten (Seiton)

3 Shine (Seiso)

4 Standardize (Seiketsu)

5 Sustain (Shitsuke)

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5S ~ THE FIVE STEPS

Sort through everything in the area - get rid of anything that is


1 Sort (Seiri)
not needed
Arrange all tools, equipment, and materials in a way that
2 Straighten facilitates smooth work flow. Locate everything as close to
(Seiton) the precise point of use as possible

Clean the entire area, including all surfaces, so that defects,


3 Shine equipment problems, and any abnormal conditions will be
(Seiso) very apparent. Make sure that al tools, parts, and fixtures
are clean.

Establish systems and processes to maintain the first 3 Ss


4 Standardize including placards or signs describing standard work, and
(Seiketsu) shadow boards indicating tool location. Make it easy to put
things in their proper place, and difficult not to.

5 Sustain Develop a managing process, with regular audits to insure


(Shitsuke) that this becomes the way the workplace is organized and
maintained.
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EXAMPLE OF A 5S IMPLEMENTATION

Filling lines to load house paint into 1 gallon buckets


Eight (8) lines installed at different times over a 40 year period
Different control systems different operator interfaces

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

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BENEFITS OF 5S

5S appears simple and straightforward, but the benefits


are huge!

Easier to work in an uncluttered work area


Tools are readily at hand eliminates time searching
Creates more operator ownership for their work area
Problems become much more visible
A clean uncluttered area is a safer area
The discipline of 5S builds the discipline needed for
Standard Work

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LEAN TOOLS - SMED

CHANGEOVER IMPROVEMENT

SINGLE MINUTE EXCHANGE of DIES

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SMED IMPROVEMENT STEPS

CHANGE CHANGE
PRODUCT A OVER
PRODUCT B OVER
PRODUCT C

CHANGEOVER Identify tasks


PRODUCT A EXTERNAL
INTERNAL TASKS EXTERNAL PRODUCT B which can be
TASKS TASKS
external

PRODUCT A INTERNAL TASKS PRODUCT B Move external tasks


EXTERNAL EXTERNAL
outside the changeover
TASKS TASKS
window

PRODUCT A INTERNAL TASKS PRODUCT B Simplify


EXTERNAL EXTERNAL
Internal tasks
TASKS TASKS

PRODUCT A Perform
INTERNAL TASKS

PRODUCT B Internal tasks


INTERNAL TASKS
EXTERNAL EXTERNAL
in parallel
TASKS TASKS
29
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SMED APPLIED TO PACKAGING OPERATIONS

Tasks which could be external


Bring new label stock to area
Bring new cardboard packaging into area
Remove old labels, cardboard, etc.

Tasks which could be done in parallel


Flushing supply lines
Adjusting mechanical fixtures
Replacing labels
Replacing cardboard stock in carton erector

Tasks which could be simplified


Everything!

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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

Taper and Fluid Cleanout


Bottles off
Line Drop Packer Set Up Palletizer & Take
Set Up Sample To Lab
Operator 2

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

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LEAN TOOLS - FTO

FINISH TO ORDER
PACKAGE TO ORDER

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FTO IN PROCESS SUPPLY CHAINS

FTO is sometimes done with process products at the final


point of sale

House paint is stocked in hardware stores only in base


colors
Small amounts of pigment are added in the store to
supply the full range of colors and shades

Thus a very high degree of variety can be supplied with modest


inventories

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FTO IN PROCESS PLANTS

FTO is also done within process plants

Crop protection products fertilizers, pesticides, fungicides


are produced in a small number of formulations
There can be tremendous variety in packaging
Material is often held in bulk, and bagged to order

Paper and plastic sheet goods are sometimes


stored as bonded or coated mother rolls
They are then slit (and chopped) to order

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EXAMPLE OF A V PROCESS

PACKAGED ROLLS = 2000 TYPES

CUT ROLLS = 1800 TYPES

SLIT ROLLS = 1000 TYPES

BONDED ROLLS FINISH-TO-ORDER


SHEET GOODS 200 TYPES POINT
MANUFACTURING
PROCESS MASTER ROLLS = 50 TYPES

RAW MATERIALS = 6 TYPES

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BENEFITS OF A FTO STRATEGY

Reduced dependence on forecasts


Differentiation based on true demand
Highly differentiating steps are usually near the end
Reduced finished product inventory
Reduced total inventory
Final process steps more available to meet real needs
Improved customer service levels

Requires the ability to store materials prior to the F-T-O or Pkg-T-O Point

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LEAN TOOLS PRODUCT WHEELS

PRODUCT WHEELS

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PRODUCT WHEELS FOR PACKAGING LINES

Many of our production lines must package a wide variety of


products : fluid, bottle size, labels, carton size

Should we run a regular


campaign cycle?
How long should the overall
campaign be?
How much of each material
should we make on each cycle?

Product Wheel design can answer all of these questions

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PRODUCT WHEELS FOR PACKAGING LINES

If were making several materials on a regular cycle, is


there an optimum sequence?
Sometimes this is obvious
But some times not
SHEET BASIS POLYMER POLYMER SHEET BASIS
PRODUCT PRODUCT
WIDTH WEIGHT TYPE TYPE WIDTH WEIGHT
423 J 12 3 J 489 J J 8 9
403 L 10 3 L 403 J J 10 3
403 J 10 3 J 406 J J 10 6
423 L 12 3 L 409 J J 10 9
426 J 12 6 J 423 J J 12 3
406 R 10 6 R 426 J J 12 6
406 L 10 6 L 489 L L 8 9
426 R 12 6 R 403 L L 10 3
406 J 10 6 J 406 L L 10 6
409 L 10 9 L 409 L L 10 9
409 J 10 9 J 423 L L 12 3
489 J 8 9 J 429 L L 12 9

Again Product Wheel design has tools for determining


429 L 12 9 L 489 R R 8 9
489 R 8 9 R 406 R R 10 6
489 L 8 9 L 426 R R 12 6
429 R 12 9 R
this. 429 R R 12 9

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DETAILED PRODUCT WHEEL CONCEPT

The sequence is optimized


PRODUCTS (SPOKES) for minimum changeover loss

The sequence is fixed


K
J A
Some low-volume products
B may not be made every cycle
I
C Spokes can have different
D lengths, based on the Takt for
each product
H
E
G F The amount actually
produced can vary from cycle
to cycle, based on actual
consumption
CHANGE-OVERS
Thus the time can vary
slightly from cycle to cycle

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PRODUCT WHEEL APPLICABILITY

Product wheels support a Pull replenishment system


Each spoke is designed based on average historical demand
What is actually produced on any spoke is just enough to
replenish what has been consumed from inventory

Product Wheels can be compatible with MRP


Product wheels can be employed in a Make-to-Stock
(MTS) or a Make-to-Order (MTO) environment
MTS and MTO products can be made on the same
wheel

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PRODUCT WHEEL EXAMPLE

Product Wheels were applied


to several packaging lines at
an automotive fluid
manufacturer.

Results
Inventories were reduced
Many low volume products now Make-to-Order
Brought structure & discipline ended the chaos

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LEAN TOOLS - VSM

VALUE STREAM MAPPING


EXAMPLES

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LEAN TOOLS - VSM

FLOW LIMITATIONS
IN A CEREAL PLANT

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FLOW LIMITATIONS IN A CEREAL PLANT

SHAPE MANUFACTURING

STORAGE
SILOS

PACKAGING
FLAKE MANUFACTURING

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POOR COORDINATION IN A CEREAL PLANT

SHAPE MANUFACTURING

The VSM
shows the
packaging area at STORAGE
75% Utilization SILOS

But - silos often


fill up, so flake or
shape production
goes down PACKAGING
FLAKE MANUFACTURING

The INFORMATION FLOW portion of the VSM shows


that the culprit is poor scheduling, no synchronization

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VALUE STREAM MAPPING SALAD DRESSING

THROUGHPUT INCREASES
IN A SALAD DRESSING PLANT

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VALUE STREAM MAPPING SALAD DRESSING

High speed bottling machine


300 bottles per minute

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VALUE STREAM MAPPING SALAD DRESSING

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%

Current State VSM, with the higher Takt requirement


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SUMMARY

Value Stream Mapping


To understand bottlenecks
To find opportunities to better synchronize operations
To understand reasons for unnecessary inventory
To see opportunities to reduce/eliminate waste

Standard work, POUS, 5S


To simplify operations
To reduce variation
To eliminate lost time
To build operating discipline

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SUMMARY

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

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TO LEARN MORE ..

The material in this


presentation is featured in

Productivity Press
May 2009

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QUESTIONS?
PeterKing@LeanDynamics.US
www.LeanDynamics.US

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