Lean Machines.docx
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LeanMachines
LeanMachines
Imagineaboardgameformanufacturingengineerswhereallthegamepiecesareassemblymachines,conveyors,partsfeeders,robotsandothertypesofequipment.ThegametakesplaceinaTier2autopartsplantthathasadoptedleanproductionprinciples.Theobjectiveistoacquiretherighttypeofassemblyequipmentwhileconfrontingmanagement,operatorsandcustomersconstantlychantingtheleanmanufacturingmantraof"wasteelimination."
Asleaninitiativesbecomemorepopular,manyengineersareplayingthatgameeveryday.Tothriveinthattypeofenvironment,engineersmustbreaktheage-oldhabitofalwayswantingtobuythefastestmachineequippedwiththelatestbellsandwhistles.Thetrickistochallengecomplexityandbalancetherightamountofautomationtomeetleanobjectivesandcustomerneeds.
Leanmanufacturinghasbeentoutedasthepanaceafortheproductionworld.However,theideaofcapitalequipmentexpenditureinaleansystemisviewedasanoxymoronbysomeobservers.Theyquestiontheroleofautomationinanenvironmenttheyperceivetobethedomainofmanualassemblyprocesses.
Othersmisinterpretleanandforegoquantumimprovementsinproductivitybymakingduewithexistingmachinesratherthanpurchasingadditionalautomationsystems.Theyfeelthatleanmanufacturingmeansspendinglessoncapitalequipment.
"Wehavecomeacrossmanycompaniesthatwishtoshortcutthecriticaladditionofequipment,"saysRichardLigus,presidentofRockfordConsultingGroup(Rockford,IL)."Atypicaltacticistopurchaseschedulingsoftwarebasedontheoryofconstraints.But,capitalequipmentplaysanextremelyimportantroleinthesuccessofaleanmanufacturingimplementation.Ihaven’tseenaprojectwhereequipmentwasn’tneeded."
Whenhisteamofconsultantsarriveatanewassignment,Ligussaysoneofthefirstthingstheycheckistheage,technologygenerationandconditionofcapitalequipment."Wealmostalwaysfindunbalancedcapacityandunderperformingequipment,"notesLigus,whosaysmanufacturingengineershaveatendencytooverautomate.
"Peopleseemtothinkleanmeansnotspendinganymoneyonautomatedequipment,"addsChetMarchwinski,communicationsdirectoroftheLeanEnterpriseInstitute(Brookline,MA)."Actually,youhavetohavesome—attherightlevelofautomation—oryoucan’timplementlean."
However,itisoftenmoredifficulttojustifycapitalequipmentexpenditureinaleanenvironment."Traditionally,capitalequipmentjustificationisbasedonprojectedutilizationrates,andthisthinkingisdeeplyingrained,notonlyinthemindsofaccountants,butinthemindsofengineersandmanagersaswell,"saysDonPenkala,presidentofGraniteBayConsultingInc.(GraniteBay,CA).
"Inaleanenvironment,wasteeliminationandleadtimereductionarethekeygoals.Thesetwomeasuresaremorecustomer-focusedanddonotrequireassetutilizationratesthatleadtoexpensiveoverproduction,backlogsateachstageofmanufactureandneedlessstorageandmaterialhandlingcosts."
Leanprinciplesallowmanufacturerstosignificantlyboostthroughput,reducetimetomarketandquicklyincreasecapacity.Implementingaleanphilosophyalsohasthepotentialtolowercostsandimproveproductquality.
Manufacturersthathaveadaptedleanprincipleshaveachievedsomedramaticresults,suchasreducedfloorspaceandimprovedefficiency.Forinstance,DelphiAutomotiveSystems(Troy,MI)cut42feetoutoftheassemblylineatitsairconditioningcompressorplantinJaguariuna,Brazil.Thatminimizedthewalkpathofoperatorsbymorethan40percent.
TheMarvairdivisionofAirxcelInc.(Cordele,GA)recentlyreducedthespacerequiredtoassembleitscommercialairconditionersandheatpumpsfrom12,000squarefeetto6,000squarefeet,a50percentreduction.Atthesametime,itreducedhours-per-unitfrom9.28to5.19fora44percentimprovement.
LeanDefined
LeanmanufacturingtracesitsrootstoToyotaMotorCo.(Tokyo).TheJapaneseautomakerdevelopeditsfamousToyotaProductionSystemmorethan50yearsago.Today,hundredsofcompanieshaveadapteditwithvaryingdegreesofsuccess.
RickHarris,presidentofHarrisLeanSystemsInc.(StampingGround,KY),says30percentto40percentofallmanufacturersintheUnitedStatesclaimtobeimplementingleanprinciples."However,only5percentaretrulyimplementingleanmanufacturing,"claimsHarris,whoformerlyservedasmanageroffinalvehicleassemblyatToyotaMotorManufacturingInc.(Georgetown,KY).
Leanmanufacturingismostcommonintheautoindustry,butcompaniesinotherindustriesrangingfromelectronicstofurniture,havesuccessfullymodifieditsbasicprinciples."Therearepocketsofcompaniesineveryindustrythataredoingitbest,"Harrispointsout.
Nomatterwhattypeofproductisbeingassembled,continuousimprovement,customerfocus,one-pieceflowandwastereductionplayakeyroleinleanmanufacturing.Thegoalistoeliminatenonvalue-addedactivitiesthatpreventaone-pieceflowofproduct.
"Leanthinkingfocusesonvalue-addedflowandtheefficiencyoftheoverallsystem,"saysDr.JeffreyLiker,directoroftheLeanProgramOfficeandtheJapanTechnologyManagementProgramattheUniversityofMichigan(AnnArbor,MI)."Leanmanufacturingisamanufacturingphilosophythatshortensthetimebetweenthecustomerorderandtheproductbuildandshipmentbyeliminatingsourcesofwaste."
Nomatterhowit’sdefined,leanisaconceptthatattackswastewithinaplantorcompany.Inaleanmethodology,wasteeliminationresultsincostreduction."Wasteisanythingthatdoesnotcontributetotransformingaparttoyourcustomer’sneeds,"saysLiker."TheNo.1causeofwasteisthefailuretorecognizethatitisthere."
Thereareseventypesofmanufacturingwaste:
productionoverimmediatedemand;excessworkinprocessandfinishedgoodsinventories;scrap,repairsandrejects;unnecessarymotion;excessiveprocessing;waittime;andunnecessarytransportation.
"Leanproductionisaimedattheeliminationofwasteineveryareaofproduction,includingcustomerrelations,productdesign,suppliernetworksandfactorymanagement,"saysDr.DavidCochran,directoroftheProductionSystemDesignLaboratoryatMassachusettsInstituteofTechnology(MIT,Cambridge,MA)."Itsgoalistoincorporatelesshumaneffort,lessinventory,lesstimetodevelopproductsandlessspacetobecomehighlyresponsivetocustomerdemandwhileproducingtopqualityproductsinthemostefficientandeconomicalmannerpossible."
AccordingtoGraniteBayConsulting’sPenkala,capitalequipmentexpenditureinaleanenvironmentshouldbejustifiedbasedontwofactors:
theamountofmanufacturingwasteeliminatedandthereductioninproductionleadArial."Wasteelimination,whichincludesproductqualityimprovement,andleadtimereductionarethemostimportantfactorstoconsider,"saysPenkala."Productivityimprovementsandlaborcostreductionareinternalmeasuresandtheleastimportant."
TimeFactors
Besideseliminatingwaste,leanproductioninitiativesfocusonreducingleadtime,whichisthetotaltimeacustomermustwaittoreceiveaproductafterplacinganorder.Takttimeformstheheartbeatofanyleansystem.Itsetsthepaceofproductiontomatchtherateofcustomerdemand.
Takttimeisdeterminedbydividingtheavailableproductiontimebytherateofcustomerdemand.Forexample,ifanautomotiveOEMdemands320fuelpumpsperdayandaTier2partsplantoperatestwoshiftsadayforatotalof960minutes,thetakttimeis3minutes.
"Ideally,inaleanenvironment,equipmentwilloperateataratedeterminedbyforecastedcustomerdemand,"saysPenkala."Thisiscontrarytojustificationbasedonhighutilizationrates.Customerdemand,includingtakttime,rapidresponse(delivery)andqualityimprovementshouldplayamajorroleincapitalequipmentjustification."
Leanexpertsclaimitiseasiertomeetcustomerdemandwithsimpler,dedicatedpiecesofequipment."Complexequipmentmaynotbetheanswer,"warnsRickHarris."It’sbettertolookforalowcapitalpieceofequipmentthatwillmakewhatyourcustomerwants,withtheabilitytoproducemoreifthecustomerdemands.Thelowerthecomplexity,thebetteroffyouwillbeinthelongrun.Unfortunately,manymachinebuildersareinbusinesstomakecomplexmachines.ToomanypeoplewanttosellaCadillacwhenaChevywilldo."
AccordingtoHarris,coauthorofCreatingContinuousFlow(publishedbytheLeanEnterpriseInstitute),machinetimeshouldbecloselycalibratedtotakttime."Inaworldwheremachinesarenotcompletelycapableoravailableanddemanddoeschange,itisbesttotargeteffectivecycleArialforeverymachineinthecellatnomorethan80percentofthefastest—highestvolume—takttime,"heexplains."Thisensuresthatoperatorswillnothavetowaitformachinestofinishcyclingthenexttimetheycomearoundtogothroughtheworkelements.Italsoprovidesabitofextracapacitytoaccommodatesomedemandincreaseswithouttheneedtoaddcapitalequipmentorpaylargeamountsofovertime."
Harrisandotherleanexpertspointoutthatengineershaveatendencytobuymorecapacitythanisneeded.JohnShook,aDexter,MI-basedsenioradvisortotheLeanEnterpriseInstitute,saysmanufacturingengineersshouldconsidermarketsizeanddemandprojectionswhenbuyingnewequipment.
"Lookforsmallerincrementsofcapacity,"suggestsShook,whoformerlyservedasdeputygeneralmanagerofToyota’sSupplierSupportCenter."Sooften,demandforecaststendtobewrong.Wejustdon’tknowwhatdemandisgoingtobe."
Thepaceofproductionshouldbe