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IMPLEMENTATION OF LEAN MANUFACTURING

By

Juan C. Tinoco

A Research Paper

Submitted in Partial Fulfillment of the

Requirements for the

Master in Science Degree in

Management Technology

Approved for Completion of 4 Semester Credits

INMGT-735 Field Problems

_________________________

Jim Keyes

Research Advisor

The Graduate College

University of Wisconsin-Stout

May, 2004 COREMetadata, citation and similar papers at core.ac.ukProvided by Minds@University of Wisconsin

ii

The Graduate School

University of Wisconsin-Stout

Menomonie, WI 54751

ABSTRACT

Tinoco Juan C._____________________

(Writer) (Last Name) (First) (Initial)

Implementation of Lean Manufacturing

_________________ (Title) Management Technology Jim Keyes May, 2004 65 (Graduate Major) (Research Advisor) (Month/Year) (No. of Pages) Publication Manual of the American Psychological Association (Name of Style Manual Used in this Study) Lean manufacturing refers to a manufacturing improvement process based on the fundamental goal of Toyota production system (TPS) in order to minimize or eliminate waste while maximizing production flow (Tapping, 2002). Many manufacturing organizations realize the importance of practicing lean techniques. However, few organizations apply lean techniques with the necessary knowledge and proven tools to achieve it. A value stream includes all the operations and processes to transform raw materials into finished goods or services, including non-value adding activities. Value stream management is a management tool for planning a production process involving lean initiatives through systematic data capture and analysis (Tapping, 2002). It is a proven process for planning the improvements that will allow companies to develop lean practices. The purpose of this study is to develop a value stream map for a manufacturing company in Minnesota. This particular tool allows the company to document current lead time, inventory iii levels and cycle times to determine the ratio of value added to total lead time of the product line being analyzed. The first step will be to create a current state map to make a picture of the production flow and understand the company's current cycle times, process communications, and machine equipment capacity. This provides the information needed to produce a future state map by creating a vision of an ideal value flow, although that will not be done in this study. The goal is to identify and eliminate the waste, which is any activity that does not add value to the final product, in the production process.

In order to collect the information needed

to complete the project, the researcher will work within the production facility. This will enable the researcher to have a first hand knowledge of the production flow and to be familiar with the activities being performed at the shop floor. In addition, the researcher will observe and collect information related to product families for the practical mapping and product/process flow from start to finish, calculating takt time from data collected by the host company. The researcher will document cycle times, down times, work-in-process inventory (WIP), and material and information flow paths. This information will enable the researcher to visualize the current state of the process activities by mapping the material and information flow and looking for opportunities to eliminate wastes and to improve the process flow. Based on all the information gathered, the company will utilize these results as a plan to map the future state and implement lean manufacturing. iv

ACKNOWLEDGEMENTS

Thanks a lot to the following people who provided

immeasurable help during this project:

Jim Keyes, my advisor;

Lloyd Peterson, at College of Technologies department at UW-Stout; Mike Armbrust and Mark Karnick at XYZ Company at Minnesota

To my wife, for supporting and loving me,

To "Juan Pi", for being my son and inspiration,

To Pedro and Mirian, for being my parents and believing in me, To Mariana, for being my sister and cheering me up, To Francisco and Dora, for being my parents in law and helping me at every moment.

To all of you and God, thanks for being there ...

v

TABLE OF CONTENTS

...page LIST OF TABLES........................................................................ LIST OF FIGURES........................................................................ CHAPTER I........................................................................ ............................................................ 1 Statement of the Problem........................................................................ .................................... 2 Research Objectives........................................................................ ............................................ 2 Importance of the Study........................................................................ ...................................... 2 Limitations of the Study........................................................................ ...................................... 3 Assumptions of the Study........................................................................ ................................... 3 Definition of Terms........................................................................ ............................................. 3 CHAPTER II........................................................................ ........................................................... 6

Definition of Lean Manufacturing........................................................................

...................... 6 Lean Manufacturing Origins........................................................................ ............................... 7

Value-Added versus Non-Value-Added Activities.................................................................... 8

Five Primary Elements for Lean Manufacturing........................................................................

9 Issues in Lean Manufacturing........................................................................ ............................. 9 Types of Wastes........................................................................ ................................................ 10 Stages of Lean Application........................................................................ ............................... 11 Demand Stage........................................................................ ............................................... 11 Flow Stage........................................................................ .................................................... 11 Leveling Stage........................................................................ ............................................... 12 vi

Lean Manufacturing Tools and Techniques........................................................................

..... 12 .................................................. 12 Kanban Systems........................................................................ ............................................ 13 Production Smoothing Method........................................................................ ..................... 16

Standardization of Operations........................................................................

...................... 16 ................................................ 17 Work Cells........................................................................ ..................................................... 19 ........................................................... 20 Definition of Value Stream........................................................................ ............................... 21 Value Stream Management........................................................................ ............................... 22 Value Stream Mapping........................................................................ ..................................... 23 ........................................................... 25 CHAPTER III........................................................................ ....................................................... 26 CHAPTER IV........................................................................ ....................................................... 30 Material Flow........................................................................ .................................................... 30 Information Flow........................................................................ .............................................. 31 Process Attributes........................................................................ ............................................. 32 Daily Customer Requirements........................................................................ ...................... 32 Takt Time........................................................................ ...................................................... 32 .................................................... 32 Individual Metrics........................................................................ ............................................. 33 Number of Operators........................................................................ .................................... 33 Cycle Time........................................................................ .................................................... 34 vii Changeover Time........................................................................ .......................................... 34 Available Uptime........................................................................ .......................................... 35

Work-in-Process (WIP) Inventory........................................................................

................ 35

Metrics for the Entire Value Stream........................................................................

................. 38 Cumulative Available Uptime........................................................................ ....................... 38

Total Value Stream WIP Inventory........................................................................

............... 38

Total Value Stream Days of WIP........................................................................

.................. 38 Total Product Cycle Time........................................................................ ............................. 38 Lead Time........................................................................ ...................................................... 38 ........................................................ 39 CHAPTER V........................................................................ ........................................................ 41 ..................................................... 41 ......................................... 42 ............................................................. 46

Appendix A: Details of a Resonator........................................................................

..................... 47 Appendix B: Quantity of Parts per Resonator.............................. ................................. 48

Appendix C: Sequence of Operations and Work center per Part.................................................. 50

Appendix D: Data Collected Day 1........................................................................

...................... 51

Appendix E: Data Collected Day 2........................................................................

....................... 54

Appendix F: Data Collected Day 3........................................................................

.......................57

Appendix G: Data Collected Day 4........................................................................

...................... 60

Appendix H: Individual Metrics Collected........................................................................

........... 63 Appendix I: Lead Time........................................................................ ......................................... 65 viii

LIST OF TABLES

Table 1: Family of ATV Resonators Selected to Develop a Value Stream Map..................27 Table 2: Metrics for Each Process.............................. Table 3: WIP Inventory Between the Processes (in terms of Resonators)..........................36 Table 4: WIP Inventory Between the Processes (in terms of Parts).................................37 ix

LIST OF FIGURES

Figure 1: Withdrawal Kanban.......................................... ....................................14 Figure 2: Production Ordering Kanban........................... Figure 3: Triangular Kanban............................................. ...................................15 Figure 4: Material Requisition Kanban........................... Figure 5: Value Stream Mapping Symbols.......................................... .....................23 Figure 6: Example of a Value Stream Map.................................... ...........................25 Figure 7: Value Stream Map for Resonators.......................................... ...................40

CHAPTER I

INTRODUCTION

Manufacturing operations are continually striving to increase productivity and output ofquotesdbs_dbs17.pdfusesText_23