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IMPLEMENTATION OF LEAN MANUFACTURING
ByJuan 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
iiThe 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. ivACKNOWLEDGEMENTS
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 MinnesotaTo 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 ...
vTABLE 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........................................................................ ........................................................... 6Definition of Lean Manufacturing........................................................................
...................... 6 Lean Manufacturing Origins........................................................................ ............................... 7Value-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 viLean Manufacturing Tools and Techniques........................................................................
..... 12 .................................................. 12 Kanban Systems........................................................................ ............................................ 13 Production Smoothing Method........................................................................ ..................... 16Standardization 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........................................................................ .......................................... 35Work-in-Process (WIP) Inventory........................................................................
................ 35Metrics for the Entire Value Stream........................................................................
................. 38 Cumulative Available Uptime........................................................................ ....................... 38Total Value Stream WIP Inventory........................................................................
............... 38Total Value Stream Days of WIP........................................................................
.................. 38 Total Product Cycle Time........................................................................ ............................. 38 Lead Time........................................................................ ...................................................... 38 ........................................................ 39 CHAPTER V........................................................................ ........................................................ 41 ..................................................... 41 ......................................... 42 ............................................................. 46Appendix A: Details of a Resonator........................................................................
..................... 47 Appendix B: Quantity of Parts per Resonator.............................. ................................. 48Appendix C: Sequence of Operations and Work center per Part.................................................. 50
Appendix D: Data Collected Day 1........................................................................
...................... 51Appendix E: Data Collected Day 2........................................................................
....................... 54Appendix F: Data Collected Day 3........................................................................
.......................57Appendix G: Data Collected Day 4........................................................................
...................... 60Appendix H: Individual Metrics Collected........................................................................
........... 63 Appendix I: Lead Time........................................................................ ......................................... 65 viii