Lean Manufacturing
Professor Deborah Nightingale
September 26, 2005
Content
• General lean concepts in factory design
• Manufacturing Video
• Manufacturing System Design Framework
• Conclusions
Source: Tom Shields, Lean Aerospace Initiative
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 2
Lean from the Toyota Production
System Shows How It All Relates
TPS
Cost control through the
elimination of waste
J
I
T
Standardized
Work
Right Qty
Right Mix
Right Time
J
I
D
O
K
A
Leveled & Balanced
Production
Perfect
Quality
Kaizen
Engaged and Creative Workforce
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 3
Aerospace Factory Designs
Have Many Things to Consider
Inputs
• Production volume
Outputs
• Product mix
• Cost
• Product design
• Frequency of changes
• Complexity
• Quality
Factory
Design
• Performance
• Delivery
• Process capability
• Flexibility
• Type of organization
• Innovativeness
• Worker skill/knowledge
ESD.61J / 16.852J: Integrating the Lean Enterprise
Focus
Here
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 4
Benefits from a Focus on Process
Rather Than Operation Improvements
• Operations
•
•
•
•
Value adding
Transportation
Delay (2 types)
Inspection
• Factory Design
•
•
•
•
O
p
e
r
a
t
i
o
n
Layout choices
Operation policies
Process Technology
Tapping human
knowledge
X
X
Part B
X
X
Part A
Store in
Move to
Warehouse Staging
Store at
Staging
Move By
AGV
Machine
Factory Design
Types of Operations
Storage
Value Adding
I Inspection
X Transport
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 5
Traditional Manufacturing
Receiving,
Incoming Inspection,
and Shipping
Injection Molding Center
1
D
D
D
L
D
D
D
L
4
12
Heat
Treat
G
G
G
G
G
G
11
MC
3
L
L5
L
Machining
Center
Final
Assembly
Center
L
MC
13
Inspection and
Test Center
2
10
7
M
8
M
M
6
M
9
Component Subassembly
The material flow could take up to millions of different paths,
creating waste of transportation and waiting at virtually every step.
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 6
Cellular Manufacturing
Receiving,
Incoming Inspection,
and Shipping
Injection Molding Center
MC
D
MC
M
D
L
G
M
G
G
M
M
G
L
G
D
G
L
D
D
M
G
D
G
G
L
M
D
G
D
D
D
M
G
L
G
D
M
M
L
G
L
Heat
Treat
G
G
M
G
L
Work Flow
D
Rather than route the materials required through the entire plant, materials flow
to the head of each work cell, through each process in the cell, then to final
assembly. This eliminates most of the transportation and waiting we would see
in the traditional approach.
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 7
Only Understood Processes
Can Be Improved
• Establish models and/or simulations to permit understanding
• Ensure process capability & maturation
• Maintain challenge of existing processes
Tools
• Five Whys
• Process flow charts
• Value stream mapping
• Statistical tools
• Data collection and discipline
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 8
Definite Boundaries Exist
Between Flow and Pull
Flow
Pull
• MRP used for planning
and control
• Takt time
• Group technology
• Reduce the number of
flow paths
• Batch or single items
• Inventory to buffer flow
• Process control
• Minimize space & distance
traveled with contiguous
processing established
ESD.61J / 16.852J: Integrating the Lean Enterprise
• Balanced production
• Level production
• Response time less than
lead time
• Standard work
• Single item flow
• Correct problems
immediately - STOP if
necessary
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 9
Lean Tools Can Apply even if
JIT System Not Logical
• Value stream mapping
• Work groups to implement
change
• Visual displays and
controls
• Error proofing
• Standardized work
• Quick changeover
• Total productive
maintenance
• Rapid problem solving
• Self inspection
Source: J. Miltonburg, Manufacturing Strategy ©1995, p31.
• Five Sʼs
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 10
Content
• General lean concepts in factory design
• Manufacturing Video
• Manufacturing System Design Framework
• Conclusions
Source: Tom Shields, Lean Aerospace Initiative
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 11
Production Operations Transition-To-Lean Roadmap
Supply Chain/External Environment
• Legal
• Environmental
• Government Reqd. Systems
(MMAS, EVMS, etc.)
Enterprise / Production System Interface
• Procurement
• Engineering
• Financial
• Information
• Quality
• Safety
• Training and Human Resources
• Workforce/Management Partnership
Phase 0
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Phase 6
Adopt Lean
Paradigm
Prepare
Define
Value
Identify
Value Stream
Design
Production System
Implement Flow
Implement Total
System Pull
• Build vision
• Build vision
• Establish need
• Establish need
• Foster lean
• Foster lean
learning
learning
• Make the
• Make the
commitment
commitment
• Obtain Sr.
• Obtain Sr.
Mgmt. buy-in
Mgmt. buy-in
• Integrate with
• Integrate with
Enterprise Level
Enterprise Level
• Establish an
Top
Lean
• Establish an
Operations
Leadership
Roadmap
Operations
Lean
Lean
Implementation
Implementation
Commitment Team(s)
Team(s)
• Develop
• Develop
implementation
implementation
strategy
strategy
• Develop a plan
• Develop a plan
to address
to address
workforce
workforce
changes
changes
• Address Site
• Address Site
Specific Cultural
Specific Cultural
Issues
Issues
• Train key
• Train key
people
people
• Establish target
• Establish target
objectives
objectives
(metrics)
(metrics)
• Select initial
• Select initial
implementation
implementation
scope
scope
• Define
• Define
customer
customer
• Define value • Define value Quality,
Quality,
Schedule, and
Schedule, and
Target Cost
Target Cost
• Record current
• Record current
state value
state value
stream
stream
• Chart product
• Chart product
and
and
information
information
flow
flow
• Chart operator
• Chart operator
movement
movement
• Chart tool
• Chart tool
movement
movement
• Collect
• Collect
baseline data
baseline data
• Develop a future
• Develop a future
state value
state value
stream map
stream map
• Identify takt time
• Identify takt time
requirements
requirements
• Review
• Review
make/buy
make/buy
decisions
decisions
• Plan new layout
• Plan new layout
• Integrate
• Integrate
suppliers
suppliers
• Design visual
• Design visual
control system
control system
• Estimate and
• Estimate and
justify costs
justify costs
• Plan TPM
• Plan TPM
system
system
+
+
• Standardize
• Standardize
operations
operations
• Mistake proof
• Mistake proof
processes
processes
• Achieve process
• Achieve process
control
control
• Implement TPM
• Implement TPM
• Implement self• Implement selfinspection
inspection
• Eliminate/
• Eliminate/
reduce waste
reduce waste
• Cross train
• Cross train
workforce
workforce
• Reduce set-up
• Reduce set-up
times
times
• Implement cell
• Implement cell
layout
layout
• Implement visual
• Implement visual
controls
controls
+
+
Phase 7
• Select
• Select
appropriate
appropriate
production
production
system control
system control
mechanism
mechanism
• Strive for single
• Strive for single
item flow
item flow
• Level and
• Level and
balance
balance
production flow
production flow
• Link with
• Link with
suppliers
suppliers
• Draw down
• Draw down
inventories
inventories
• Reassign people
• Reassign people
• Re-deploy/
• Re-deploy/
dispose assets
dispose assets
+
Strive for Perfection
Expand
Internally/Externally
• Team development
• Optimize quality
• Institutionalize 5S
• Institute Kaizen events
• Remove system barriers
• Expand TPM
• Evaluate against
target metrics
• Evaluate progress
using lean maturity
matrices
ENTRY
© 2000 Massachusetts Institute of Techn
ology
IMPROVED
COMPETITIVE
POSITION
6/5/00
Content
• General lean concepts in factory design
• Manufacturing Video
• Manufacturing System Design Framework
• Conclusions
Source: Tom Shields, Lean Aerospace Initiative
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 13
Background
• Matured aerospace industry
• Industrial innovation theory
• Implications on the aerospace industry
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 14
Matured Aerospace Industry
• Customers
demanding specific
capabilities
• Cost and
affordability more
prominent
• Innovation
characteristics
have changed
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 15
Utterbackʼs Dynamics of
Innovation Model
• Rate of product
innovation highest
during formative years
• As product matures rate
of process innovation
overcomes product
innovation
• Very mature products
have low levels of both
product & process
innovations
Source: William Abernathy & James Utterback, 1978
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 16
Theory in Application
Utterbach's Dynamics of Innovation
Number of Firms
Emergence of the
Dominant Design
Fluid Phase:
Rapid technology
innovation,
many firms
founded
Transition Phase:
Shakeout, competition
shifts to process
Specific Phase:
Stable, small number of firms
competition shifts to price
Destabilizing changes in technology
or process can destroy industry!
Time
Source: Data (cars), from Entry and Exit of Firms in the U.S. Auto Industry: 1894-1992. National Academy of Science: theory concepts from
Utterback, Dynamics of Innovation, 1994
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 17
Dominant Design?
1958
1995
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 18
Dominant Design?
1953
1972
2002
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 19
Extension of Theory to the
Aerospace Industry
Industrial evolution and the emergence
of the dominant design
50
35
80
40
Cars: enclosed
steel body
Typewriters:
Open, moving carriage
Aeronautics:
Jet transport and
jet fighter-bomber
30
60
20
40
1860
10
Natural
progression?
1880
1900
Source: Murman, et al., Lean Enterprise Value, 2002
ESD.61J / 16.852J: Integrating the Lean Enterprise
20
15
20
10
0
Number of major
automobile companies
Number of major
typewriter companies
30
Government intervention
motivated by cold war
1920
1940
1960
1980
5
0
2000
Year
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 20
Number of major U.S.
Aerospace companies
25
Implications for the Aerospace
Industry
• Producibility and cost are more competitive factors
• Manufacturing inputs should carry more weight
• Emphasis should be on process innovation
• Firm core competencies must match industrial maturity
• Manufacturing strategy cannot be stepchild to platform
strategy
Result:
Result: Heritage
Heritage equipment,
equipment, facilities
facilities and
and
mindsets
mindsets drive
drive manufacturing
manufacturing system
system design
design
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 21
Proposal
AAholistic
holisticmanufacturing
manufacturingsystem
systemdesign
designframework
framework
l
to
toensure
ensure process
processconsiderations
considerationsare
are integra
integral
to
tothe
the product
productdevelopment
developmentprocess
process
Characteristics
• Uses principles of systems engineering
• Visual depiction of “design beyond factory floor” ideas
• Manufacturing as part of the product strategy
• Manufacturing system design is strategy driven, not product
design driven
• Combines multiple useful tools
• Provides insights into order and interactions
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 22
Manufacturing System Design
•
Manufacturing system “infrastructure” design
•
•
•
•
•
Manufacturing strategy
Operating policy
Partnerships (suppliers)
Organization structure details
Manufacturing system “structure” design
•
•
•
•
Buildings, location, capacity
Machine selection
Layout
WIP
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 23
Stakeholders
Society
Suppliers Customers
Employees Stockholders Mgmt
Govt.
Manufacturing System Design
Corporate Level(Corporate Strategy)
[Seek approval]
[Interpret]
(Business Strategy)
Business Unit
Product Strategy
Product Design
Manufacturing
Marketing
Requirements/Considerations/Constraints
Optimizing
Manufacturing System Design/Selecti
on
Implement (pilot)
Evaluate/Validate
Modifications
Suppliers
Stakeholders
Manufacturing System Design
Corporate Level
[Seek approval]
[Interpret]
Business Unit
Product Strategy
Product Design
DFMA, IPT
Risk-sharing Partnerships
Manufacturing
Customer Needs
3-DCE
Concurrent Engineering
Technical Feasibility
Feasible performance guarantees
- Miltenburg, - 3P, - 2D plots,
Requirements/Considerations/Constraints
- MSDD - AMSDD - design Kaizen
- Analytical Tools,
- Simulation Tools
Manufacturing System Design/Selection
Fine Tune
Implement (pilot)
Modifications
Suppliers
Marketing
Make/Buy
• VSM
• Kaizen
• Trial & Error
• Kaikaku
Finalized Product Design
Evaluate/Validate
Insights from the Framework
• Linkage of strategy and manufacturing
system design
• Three important characteristics
• Phase presence
• Phase timing
• Breadth across functions
Following
Followingthe
the framework
framework process
processwill
willresult
resultin
inthe
the
development
developmentof
ofeffective
effective manufacturing
manufacturingsystem
systemthat
that
meets
meetsthe
the goals
goalsof
ofthe
the corporation
corporation(Vaughn
(Vaughn&&Shields)
Shields)
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 26
Conclusions
• Competitive advantage from manufacturing
excellence (enterprise strategy)
• Performance more closely related to how
system designed (not production volume)
• Manufacturing as a true participating partner
with the other functions (coequal status)
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 27