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The goal is also to maintain the right amount of work-in-process as too much work-in-process creates delays and reduces productivity. Cellular manufacturing Cellular manufacturing creates the optimal arrangement of machines and equipment to maximize the efficiency of production. The company cellularized the manufacturing process so that the part was instead assembled within an area of 100 feet.
Results: The lean improvements reduced indirect labor costs by 21 percent, which helped the company reduce prices, increase market share, and retain 25 positions.
Related Reading:What is Sustainable Manufacturing?
Next-Generation Lean
Lean tools are always valid.
Customer ServiceA manufacturer was having trouble keeping up with an increased demand for orders. Operational costs were high, including three full-time material stagers who unloaded, stored, and delivered the materials to assembly lines as needed. It acknowledges that they know the ups and downs of their equipment and processes the most and will know how to eliminate waste from those processes that managers do not see.
This makes it much easier to deliver products as needed, as it means the customer can “pull” the product from you as needed (often in weeks, instead of months).
As a result, products don’t need to be built in advance or materials stockpiled. Continuous flow does its best to remove all delays and mistakes, striving for uninterrupted flow throughout the process and maintaining takt time.
Kaizen Kaizen is the process of helping employees work together proactively to achieve steady improvements in the manufacturing process. In the past, this required visual inspection of machinery and lubricants.
The idea is to draw a "map" of the flow of material/product through the process, with a goal of identifying every step that does not create value and then finding ways to eliminate those wasteful steps.
Value-stream mapping is sometimes referred to as process re-engineering. After analyzing workflow, management realized that a single heating and air conditioning part traveled 1.5 miles throughout the plant during assembly.
When done correctly, lean can create huge improvements in efficiency, cycle time, productivity, material costs, and scrap, leading to lower costs and improved competitiveness.
Lean isn’t just restricted to manufacturing. Printing IndustryA printing company was struggling with late orders and long lead times.
Lean principles are a straightforward, common-sense approach for improving manufacturing operations within any production process.
Lean removes waste and digital technologies make that process much faster, with fewer steps—often independent of human bias.
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According to consulting firm Bain and Company, compared to a 15 percent reduction in operating costs using traditional lean practices, a combined “digital lean” approach can produce up to a 30 percent savings, with faster payback.
It is calculated as planned production time/customer demand and reflects the average time between the start of making one part and the start of production of the next part. Flow
After the waste has been removed from the value stream, the next step is to be sure the remaining steps flow smoothly with no interruptions, delays, or bottlenecks. With the onset of Industry 4.0 and the Internet of Things (IoT), though, lean goals can be accomplished much more quickly.
Management turned to lean techniques to map out the customer service process and eliminate waste from the value stream. 5S (visual workplace) was also used to maximize workflow before deploying cellular manufacturing systems.
Results: On-time delivery increased to 95 percent with much-shortened lead times, and improved inventory management resulted in less waste of finished product.
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The production process is monitored to maintain this optimum pace of production, the production team making adjustments as needed in real time to bring variances back into control.
More Like This:Seven Ways IoT Super-charges Lean Manufacturing
3. Long considered a way to greatly improve manufacturing efficiency, lean can be applied to any business or production process, in any industry.
For example, lean is now being used extensively in the healthcare industry to improve efficiency and reduce costs.
Management wanted to eliminate the warehouse without slowing down production, so a lean team worked with suppliers to design a point-of-use kanban system for just-in-time manufacturing. A lean team found ways to streamline machine set-up and changeover requirements: a scheduling system was installed to enhance just-in-time manufacturing and upstream balance production of parts with downstream manufacturing and assembly.
Results: Machine set-ups that once averaged five hours per machine were reduced to 35 minutes, adding about five hours of additional up-time per machine per day.
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Automotive Parts ManufacturingAn automotive manufacturing company was losing production efficiency during shift changes—three shift changes per day averaged 30 minutes each.