Lean Training Lean Basics 1 Design. Build. Ship. Service. Business Excellence GBE-KPO-2-001-00 Lean Basics 1 Rev.04 1 Document Title: Lean Basics 1 Document# GBE-KPO-2-001-00 Organization: Global Business Excellence Revision: 04 Document Owner: Chuah Khar Yee Effective Date: December 11, 2008 APPROVALS NAME Ganesh S Maniam REVISION 04 TITLE Director DEPT NAME Global Business Excellence REVISION HISTORY DESCRIPTION OF CHANGE Document formatted as per DMS policy DATE December 11, 2008 ORIGINATOR Chuah Khar Yee RELEASE DATE December 11, 2008 This document is proprietary and confidential property of Flextronics. GBE-KPO-2-001-00 Lean Basics 1 Rev.04 2 Table of Contents Contents Slide(s) Overview & Scope 3 Objectives 4 A Brief History of Lean 6 The Flextronics Lean Enterprise (FLE) 13 Waste Elimination 16 Value Stream Mapping (VSM) 29 5S & Visual Management 37 Super Market 55 GBE-KPO-2-001-00 Lean Basics 1 Rev.04 3 Overview & Scope Lean Manufacturing is a generic process management philosophy derived mostly from the Toyota Production System (TPS) but also from other sources. It is renowned for its focus on reduction of ‘Seven Wastes' in order to improve overall customer value. * Toyota's achievement made "Lean" a hot topic in management science in the first decade of the 21st century. Lean Manufacturing can be defined as: "A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection." * Info Source: http://en.wikipedia.org/wiki/Lean_manufacturing GBE-KPO-2-001-00 Lean Basics 1 Rev.04 4 Objectives Introduce Flextronics Lean Enterprise (FLE) and its elements • Waste Elimination • Value Stream Mapping (VSM) • 5S & Visual Management • Supermarket GBE-KPO-2-001-00 Lean Basics 1 Rev.04 5 What Executives (Really) Need to Know 98% of Organisations that engage with Lean, Fail!! WHY??? Lean is HARD!!! Lean Thinking It’s a people issue. That’s why it’s so hard. Getting people to change – to do things differently than they have done them – is really, really hard. ¾ Art Byrne, CEO Wiremold If a company is really maniacal about Lean it takes two to three years to go from kindergarten to first grade. That’s how tough it is. ¾ Mark DeLuzio, architect of the Danaher Business System, Danaher Excerpts from the book “Lean Machines” GBE-KPO-2-001-00 Lean Basics 1 Rev.04 6 A Brief History of Lean Lean History Timeline The Origins of Lean Manufacturing GBE-KPO-2-001-00 Lean Basics 1 Rev.04 7 Lean History Timeline Father of Management Father of Motion-Time Study Father of Assembly Line Concept Industry Quality Transformation Birth of TPS/Lean Concepts Ohno Shingo “The Machine That Changed The World” “Lean Thinking” Info Source: http://www.strategosinc.com GBE-KPO-2-001-00 Lean Basics 1 Rev.04 8 The Origins of Lean Manufacturing Lean Manufacturing has its’ root in the Toyota Production System (TPS). Several individuals at Toyota were instrumental in developing and systematizing TPS. Among the most important were: Sakichi Toyoda (1867~1930) • Japan’s “King of Inventors.” • His concept of Jidoka (autonomation) is one of the foundational principles of TPS. • First applied toToyoda Power Loom equipped with a new weft-breakage automatic stopping device (developed in 1896). • World's first automatic loom with a non-stop shuttle-change motion, the Type-G Toyoda Automatic Loom (developed in 1924). • Founded Toyota Motor Co. in 1937. For more info: http://en.wikipedia.org/wiki/Sakichi_Toyoda Toyota Sedan Model AA Type G Automatic Loom Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html GBE-KPO-2-001-00 Lean Basics 1 Rev.04 9 The Origins of Lean Manufacturing Kiichiro Toyoda (1894~1952) • Sakichi’s son. • The TPS has evolved through may years of trial and error to improve efficiency based on the Just–in–Time (JIT) concepts developed by Kiichiro Toyoda, the founder (and second president) of Toyota Motor Corporation. • Inherited Sakichi Toyoda philosophy, set out to realize his belief that “the ideal conditions for making things are created when machine, facilities and people work together to add value without generating any waste“. • Conceived methodologies and techniques for eliminating waste between operations, between lines, between processes. The result was the so called JIT method. • Drawing on his experience of introducing a flow production method using a chain conveyor into the assembly line of a textile plant (completed in 1927) with a monthly production capacity of 300 units. • Introduced this method into the body production line at Toyota Motor Co., Ltd.'s Koromo Plant (present day Honsha Plant), completed in 1938. • He studied Ford’s production system and adapted it to the smaller, more diverse Japanese market. For more info: http://en.wikipedia.org/wiki/Kiichiro_Toyoda Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html GBE-KPO-2-001-00 Lean Basics 1 Rev.04 10 The Origins of Lean Manufacturing Eiji Toyoda (1913 ~) • By ensuring thorough implementation of Jidoka and the Just-in-Time method, Eiji Toyoda increased workers' productivity in adding value and realized the Toyota Production System, which enabled Toyota to compete head-on with companies in Europe and the U.S. For more info: http://en.wikipedia.org/wiki/Eiji_Toyoda Taiichi Ohno (1912~1990) • With strong backing from Eiji Toyoda, Taiichi Ohno helped establish the Toyota Production System, and built the foundation for the Toyota spirit of "making things" by, for example, creating the basic framework for the Just-inTime method. • Known as the “Architect of TPS.” • Systematized Jidoka, JIT, standardized work and kaizen into what we now know as TPS. • Father of the supermarket system of inventory control. For more info: http://www.strategosinc.com/taiichi_ohno.htm http://en.wikipedia.org/wiki/Taiichi_Ohno Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html GBE-KPO-2-001-00 Lean Basics 1 Rev.04 11 The Origins of Lean Manufacturing Dr. Shigeo Shingo (1909~1990) • In 1930, after graduation from Yamanashi Technical College, he went to work for the Taipei Railway Company. • In 1943, he was transferred to the Amano Manufacturing Plant in Yokohama. • In 1945 and 1946 and also began a long association with the Japanese Management Association (JMA). • In 1955, he began another long association, this time with Toyota. In addition to his many consulting assignments in other industries. It is during this period that he first started work on setups by doubling the output of an engine bed planer at Mitsubishi's shipyard. • In 1959, he left JMA to start his own consulting company. During the early 1960's, as an outgrowth of work with Matsushita, he developed his concepts of "Mistake-Proofing“ (Poka–Yoke). • In 1969, SMED was originated when he cut the setup time on a 1000 ton press at Toyota from 4.0 hours to 3.0 minutes. • During the 1970's, he traveled in Europe and North America on many lectures, visits and assignments. He began to see Toyota's efforts as an integrated system and began to assist several U.S. and European firms in implementation. Info Source: http://www.strategosinc.com/shigeo_shingo.htm GBE-KPO-2-001-00 Lean Basics 1 Rev.04 12 The Origins of Lean Manufacturing • By practicing the philosophies of “daily improvements" and “good thinking, good products" the TPS has evolved into a world-renowned production system. Furthermore, all Toyota production divisions are making improvements to the TPS day and night to ensure its continued evolution. • At least as important as the tools that these founders discovered, was the realization by top Toyota management that for the system to work, workers must be continuously trained, motivated, and properly supported at all times. Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html GBE-KPO-2-001-00 Lean Basics 1 Rev.04 13 The Flextronics Lean Enterprise (FLE) The Flextronics Lean Enterprise (FLE) Sequential Applications of Tools GBE-KPO-2-001-00 Lean Basics 1 Rev.04 14 The Flextronics Lean Enterprise (FLE) Adding Value and Eliminating Waste FLE Pull Production Single Piece Flow Stop @ Abnormality JIT Jidoka Takt Time Production Level Loading Autonomation Heijunka Sequencing VSM, 5S, Supermarkets GBE-KPO-2-001-00 Lean Basics 1 Rev.04 15 Sequential Application of Tools 7. Jidoka Stop at Abnormalities Human Intelligence into machines 5. JIT 6. Prod Prep Process (3P) Takt Time Standard work Single Piece Flow Takt Time Pull Production Standard WIP Flow Op Sequence Kanban Degree of Change + Impact 4. Heijunka Level Loading Sequencing 1. 5S Seiri - Sort Seiton - Set In Order Seiso – Shine / Sweep Seikets - Standardize Shitsuke - Sustain 2. Material Presentation Receiving Break Bulk Supermarket Kitting 3. VSM Current State Future State Time Value ValueStream Streamisisthe theFoundation Foundation GBE-KPO-2-001-00 Lean Basics 1 Rev.04 16 Waste Elimination Seven Wastes (TIMWOOD) GBE-KPO-2-001-00 Lean Basics 1 Rev.04 17 Understanding & Eliminating Waste “Begin by learning the FUNDAMENTALS. If you learn the wrong ideas about fundamental matters, you are likely to continue to make mistakes later, no matter how enthusiastic you are about implementing improvements.” The Seven Types of Waste… • • • • • • • Transportation Inventory Motion Waiting Overproduction Over Processing Defects TIMWOOD Waste WasteExists ExistsIn InEvery EveryProcess…Eliminate Process…EliminateIt! It! GBE-KPO-2-001-00 Lean Basics 1 Rev.04 18 The Universal Lean Principle Info Source: http://www.lean.org/WhatsLean/Principles.cfm Value Stream Identify the wastes in the Value Stream and remove all the wastes Value Flow Correctly Specify Value of Product/Service with Customer in mind Make the Product and Value Flow Smoothly Pursue Perfection Pull Produce only to the Pull of Customer Demand Wastes Elimination as an Ongoing Process towards Perfection GBE-KPO-2-001-00 Lean Basics 1 Rev.04 19 Defining Value Value Added Activity Something customers are willing to pay for… - AND changes the form, fit, or function of materials or information … - AND Is being done right the first time. Non -Value Added Activity All other actions and unwanted features are by definition…WASTE adding no value to the customer….simply raise costs in our business! Before After Time Value Added Work Non Value Added Work Eliminate EliminateNon-Value Non-ValueAdded AddedActivity Activity GBE-KPO-2-001-00 Lean Basics 1 Rev.04 20 Understanding & Eliminating Waste Observe that 2 Things are ALWAYS happening concurrently. . . . . . Things that should be done WORK Things that should not be done WASTE Before After Time Value Added Work Non Value Added Work “It”…Either “It”…EitherAdds AddsValue Valueor orDoes DoesNot Not GBE-KPO-2-001-00 Lean Basics 1 Rev.04 21 Waste #1 - Transportation • Requires Equipment • Increases Handling Damage • Necessary … Must Minimize This is what you are striving for… Orbital Weld Weld End Finish Weld End Finish Flex Torch Braze Mech. Clean Mech. Clean Mark Hydro Test Machines MachinesNext Nextto toEach EachOther Other…Transport …TransportTime TimeMinimized Minimized GBE-KPO-2-001-00 Lean Basics 1 Rev.04 22 Waste #2 - Inventory • Ties Up Working Capital • Takes Valuable Space • Risk of Obsolescence Poor product quality Frequent breakdowns Long changeovers Inventory levels High spoilage Unplanned stoppages Slow running Waste WasteAsks AsksFor ForMore MoreWaste Waste GBE-KPO-2-001-00 Lean Basics 1 Rev.04 23 Waste #3 - Motion • Ergonomic Concerns • Labor Efficiency • Wasted Cycle Time ??? sitting climbing turning around walking bending lying down searching choosing Before After Treat TreatOperators Operatorsas asSurgeons…Everything Surgeons…EverythingWithin WithinReach Reach GBE-KPO-2-001-00 Lean Basics 1 Rev.04 24 Waste #4 - Waiting • Increases Lead Time • Increases Work in Process • Slows Response to Customer When WhenInventory InventoryWaits WaitsYour YourCustomer CustomerWaits Waits GBE-KPO-2-001-00 Lean Basics 1 Rev.04 25 Waste #5 – Overproduction • Ties Up Working Capital • Takes Up Floor Space • Hides Process Problems Do DoNot NotProduce ProduceWhat Whatthe theCustomer CustomerDoes DoesNot NotNeed Need GBE-KPO-2-001-00 Lean Basics 1 Rev.04 26 Waste #6 – Overprocessing • Create Delay • Increase Opportunity for More Defects • Do not Add Value By Definition Manual Entry of Information Match MatchPhysical PhysicalMovement MovementWith WithSystemic SystemicTransaction…Strive Transaction…Strivefor for1:1 1:1Ratio Ratio GBE-KPO-2-001-00 Lean Basics 1 Rev.04 27 Waste #7 - Defects • Upset Customers • Consume Resources • Choke Flow Reworking ReworkingDefects DefectsIsIsWasteful…Sending Wasteful…SendingThem Themto toCustomers CustomersisisOutrageous Outrageous GBE-KPO-2-001-00 Lean Basics 1 Rev.04 28 (7 Wastes) + 1 Waste – Skills (Unutilized Skills) • Unutilized resources of skill/knowledge from the shop floor worker Skills Skillsnot notUtilized Utilized GBE-KPO-2-001-00 Lean Basics 1 Rev.04 29 Value Stream Mapping (VSM) Current State Map Future State Map GBE-KPO-2-001-00 Lean Basics 1 Rev.04 30 What is the Value Stream? Supplier Flextronics : Suppliers Flextronics Ops : Plant/Service Repair Shop Flextronics : Customer Customer TOTAL Value Stream See Seethe theWhole WholeProcess Processfrom fromStart Startto toFinish Finish GBE-KPO-2-001-00 Lean Basics 1 Rev.04 31 Levels of Mapping Process ProcessLevel Level Single SinglePlant Plant (door (doorto todoor) door) Multiple MultiplePlants Plants Across Across Companies Companies Can CanBe BeUsed Usedat atAny AnyLevel Levelin inthe theBusiness Business GBE-KPO-2-001-00 Lean Basics 1 Rev.04 32 Why do Value Stream Mapping? • Understand current state - Big picture point of view • Shows the ratio of Non-Value Added to Value Added Time • Exposes sources of waste - not just waste • Shows linkage between the seven types of flow Forms Formsthe theBlueprint Blueprintfor foraaLean LeanImplementation ImplementationPlan Plan GBE-KPO-2-001-00 Lean Basics 1 Rev.04 33 How do we start? 1 Product ProductFamily Family Identify the Value Stream for every major product family / program Concept to launch - Order to delivery 2 Current CurrentState State Drawing Drawing Map the current state - Identify all the actions that don’t create value (VA/NVA/VE*) 3 Future FutureState State Drawing Drawing Develop and map concepts for the future state as a management team & communicate your vision to your team 4 Implementation Implementation Plan Plan Develop metrics & determine goals … How success will be measured? Develop actions and drive toward future state Note: VE is Value Enabler, e.g. ISO, OSHA, ANSI/ESD S20.20, MSC, RoHS, etc GBE-KPO-2-001-00 Lean Basics 1 Rev.04 34 What will be seen? The 7 Types of ‘Flow’ 1. 2. 3. 4. Material – Raw Material – WIP Material – Finished Goods Information • Act on material • Load into machine • Move it from 1 bucket to another 5. People • Standard Work • Takt Time 6. Equipment • Carts • Conveyors • Andons • Racks • TPM 7. Engineering / Tools • Quality • Tooling • Cutting tools • Programs The TheProblems Problemsas aswell wellas asthe theAnswers AnswersLie LieWithin Withinthe theFlow Flow GBE-KPO-2-001-00 Lean Basics 1 Rev.04 35 Guidelines for Mapping • Start at the customer and work backwards • Walk the actual flows • Don’t Map the Organization but the flow through it • Don’t be too detailed this is an overview • Use pencil not power point … quick and crude Pretend Pretendyou youare arethe the‘product’ ‘product’… …And Andfollow followthe the‘product’ ‘product’path pathflows flows GBE-KPO-2-001-00 Lean Basics 1 Rev.04 36 Example of Current State VSM Forecast 3mths Firm Monthly Material Specialist Program Administrator Forecast Supplier Customer Firm Weekly Production Control MENLO Hub Daily Shipment Plan Loading Plan (Weekly, Daily) Suppliers Suppliers ICT Yield: 96% SMT-WAVE Yield: 90% MLT Processing 7200 sec Time : Supplier : Manual Transport 1 day : Fork lift : Store 1 day 7200 sec FVMI Yield: 90% Coating Yield: 90% 1 day 7200 sec FQA Yield: 90% 1 day 1 day 7200 sec : Picking cart : Material Flow(Blue) : Information Flow(Black) : Process : Truck : Process Flow(Black) : Receipts : PC Packing Yield: 90% 7200 sec E V 7200 sec : Elevator Total: MLT: 5 Days PT: 43200 MLT : Manufacturing Lead Time PT: Processing Time GBE-KPO-2-001-00 Lean Basics 1 Rev.04 : Inventory Customer 37 5S’s & Visual Management Sort Set in Order Shine GBE-KPO-2-001-00 Lean Basics 1 Rev.04 Standardize Sustain 38 Introduction to the 5S’ Sort (Seiri) … Proper Arrangement Set in Order (Seiton) … Simplify/Clean up Shine/Sweep (Seiso) … Cleanliness Standardize (Seiketsu) … Orderliness Sustain (Shitsuke) Self Discipline … GBE-KPO-2-001-00 Lean Basics 1 Rev.04 39 Definition What is the 5S? • Establish standards to detect an abnormality • Create and maintain an organized, clean and safe work area • Conditioning discipline for Action Workout GBE-KPO-2-001-00 Lean Basics 1 Rev.04 40 Step 1 : Sort (Seiri) PURPOSE ASK YOURSELF Eliminate all unnecessary items … Items not needed now for production What do we need? What can we remove? When WhenIn InDoubt Doubt. .. .. .Throw ThrowItItOut Out GBE-KPO-2-001-00 Lean Basics 1 Rev.04 41 Step 2 : Set in Order (Seiton) PURPOSE ASK YOURSELF Organize and arrange what you need What do we need to use 1st, 2nd … Where should it be? Everything Everythingyou youREALLY REALLYNeed Needat atyour yourFingertips Fingertips GBE-KPO-2-001-00 Lean Basics 1 Rev.04 42 Step 3 : Shine (Seiso) PURPOSE ASK YOURSELF Identify abnormalities by visually sweeping the area Does this belong here? Is it needed right now? Be Beable ableto toquickly quicklydetect detectan anabnormality abnormality GBE-KPO-2-001-00 Lean Basics 1 Rev.04 43 Step 4 : Standardize (Seiketsu) PURPOSE ASK YOURSELF Arrange items so that they can be found quickly by anybody Does everything has a place? Is everything in its place? Anyone Anyoneshould shouldbe beable ableto toeasily easilyunderstand understandproper properarrangement arrangementand andabnormalities abnormalities GBE-KPO-2-001-00 Lean Basics 1 Rev.04 44 Step 5 : Sustain (Shitsuke) PURPOSE Leadership responsibility to sustain the first 4S’s ASK YOURSELF 5S’s Level 5 Level Of Improvement Level 4 Level 3 Level 2 Level 1 Are the actions clearly defined? Clear ownership? Sort Simplify Sweep Standardize Self Discipline Anything not required for immediate production is removed from the line. All items can be easily retrieved by anyone; they are clearly marked. Immediate actions taken against abnormalities; Shop kept orderly on a continuous basis. Material layout, assembly, Immediate actions taken & communications are against assembly documented, standardized abnormalities. & followed rigorously. Non-utilized cabinets, benches, tables, etc. identified and removed from area. Standardized item quantities are established; Shadow boards are utilized. Daily cleanliness inspection of equipment, tools and supplies. Area’s individuals take Establish & follow standard procedures.They ownership; standards are clear, up-to-date, and are followed. displayed in work areas. Unneeded materials removed from plant; not stored away. Needed items have dedicated locations which are clearly labeled. Visual controls established and well marked for work area. Labeling of items with required quantities are standardized. Daily checks performed by area leaders; standards are regularly reviewed and updated. Needed and unneeded materials have been identified and separated. Needed items have been safely stored and organized. Area team leaders identified and responsibilities documented. Procedures are documented, but not consistently followed. Periodic checks are performed by area leaders. Needed and unneeded materials are mixed throughout the work area. Items are placed randomly throughout the work place. Work areas unkept; No visual controls in place. Information is “hidden” in the computer system. No procedures in place. No area checks are performed; standards are not established. Steps of Implementation Easy EasyTo ToMeasure Measure… …Stay StayFocused Focused GBE-KPO-2-001-00 Lean Basics 1 Rev.04 45 (5S) +1 : Safety • • • • Safety must be in everyone mind all time. Safety is the 1st item when you are doing any kind of Improvement Safety cannot be compromised with all the other 5S’s activities. Zero tolerance to any industry GBE-KPO-2-001-00 Lean Basics 1 Rev.04 46 Keys to 5S’s Success • Get everyone involved. • Integrate 5S Principles into daily work requirements. • Communicate need for 5S, roles of all participants, how it is implemented. • Be consistent in following 5S Principles in all areas • Business Team Leader involvement is a must! • Follow through -finish what is started - 5S takes effort and persistence. • Link 5S activity with all other Action Workout initiatives. GBE-KPO-2-001-00 Lean Basics 1 Rev.04 47 The Foundation The 5S is the foundation for Flextronics Lean Enterprise. In order to visually detect any abnormal condition, we need to establish Visual Management & Standards. GBE-KPO-2-001-00 Lean Basics 1 Rev.04 48 5S’s Leadership Responsibility • Management at all levels must be committed to establishing and maintaining the 5S process. • Before people leave work for the day, everyone must ensure that the cell meets 5S principles. • The use of checklist for monitoring adherence, quantifying results of cell inspections and prominent display of each area’s results are tools which management can use to help sustain the process. • Management must lead by example. • Walk the Talk! GBE-KPO-2-001-00 Lean Basics 1 Rev.04 49 Create Standards….. Detect Abnormalities Look here … • 5 cowboys to drive 1000 cattle • Should take one look and understand the situation • Clearly differentiate between what is “Normal” and “Abnormal” • Detect what is “Abnormal” Not here … Don’t Don’t“Manage” “Manage”aaStandard Standard… …Detect Detectthe theAbnormality Abnormality GBE-KPO-2-001-00 Lean Basics 1 Rev.04 50 Create Standards….. Detect Abnormalities GBE-KPO-2-001-00 Lean Basics 1 Rev.04 51 Create Standards….. Detect Abnormalities Very VeryEasy Easyto toDetect DetectAbnormalities Abnormalities! ! GBE-KPO-2-001-00 Lean Basics 1 Rev.04 52 Create Standards….. Detect Abnormalities Which WhichSituation SituationisisEasier Easierto toManage Manage?? GBE-KPO-2-001-00 Lean Basics 1 Rev.04 53 Create Standards….. Detect Abnormalities All small parts have defined place Vertical Limit Horizontal Limit GBE-KPO-2-001-00 Lean Basics 1 Rev.04 54 Create Standards….. Detect Abnormalities GBE-KPO-2-001-00 Lean Basics 1 Rev.04 55 Supermarket Visual Management GBE-KPO-2-001-00 Lean Basics 1 Rev.04 FIFO 56 Supermarket Supermarket is a stocking location for raw material/WIP/FG with the following characteristics: • Enables Visual Management. • Right size to support level loaded plan. • FIFO Material Flow. • Controlled Entry/ Exit of Parts “locked” (as required…initially) • 5 No's - No thinking, No searching, No counting, No checking, No waiting What Whatdo doI Ilook lookfor forin inaaSupermarket? Supermarket? GBE-KPO-2-001-00 Lean Basics 1 Rev.04 57 Example of Supermarket GBE-KPO-2-001-00 Lean Basics 1 Rev.04 58 Example of Supermarket GBE-KPO-2-001-00 Lean Basics 1 Rev.04 59 Example of Supermarket GBE-KPO-2-001-00 Lean Basics 1 Rev.04 60 Example of Supermarket GBE-KPO-2-001-00 Lean Basics 1 Rev.04 61 Example of Supermarket 2 In 4 Out GBE-KPO-2-001-00 Lean Basics 1 Rev.04 62 Steps to Set-up Supermarket 1. Set break bulk area for Supermarket 2. Right Size of Supermarket • Supermarket physical set-up should meet “Supermarket Evaluation Checklist”(Refer to page 64) and the score should be 100% • Start with “Right size of bin” which is based on consumption rate and condition required by customer (production line) • Min-Max and Re Order Point (ROP) shall be clearly defined and visually trigger • Replenishment should be based on consumption pull 3. Right Size of Inventory • Utilize the “Inventory Tracking Sheet” (refer page 68) • Calculate right size of Inventory – Ideal Inventory (Min-Max / RoP) • Isolate and Visualize excess inventory 4. Right Purchase Method • Use Kanban as delivery control • Trigger PO and delivery signal to supplier only if kanban issued GBE-KPO-2-001-00 Lean Basics 1 Rev.04 63 How to Track Supermarket Implementation? 1. Height Requirements: Rack height is limited to human height or reachable with eliminated motion climbing, searching and sorting 2. Address: Location, Part Number, ROP (Min/Max) 3. FIFO: Demonstrate an auto gravity pull gradient design FIFO mechanism 4. Pull Material: Shop floor providing Sequential pull systems. Supermarket issuing only what is requested to replenish Production Material usage 5. Visual Management: Enable material order personal react to inventory level 6. No Waiting Transaction: All activities between raw material receiving and build on board have been evaluated; eliminate non-value-creating waste such as waiting 7. Return Flow: Material return to supermarket flow as pre-define processes, Excess material return to warehouse is under standard work control. An Integrated flow to abolish overprocess of re-verification/inspection, waiting along the returning process 8. Water Strider: Identify a group of operators work as Water Strider. Separated the job function from normal assembly line operator 9. Work Standard and Combination Sheet: Define the work instructions and work route for all Water-Strider 10. 5 No's - No thinking, No searching, No counting, No checking, No waiting GBE-KPO-2-001-00 Lean Basics 1 Rev.04 64 Supermarket Evaluation Check-list GBE-KPO-2-001-00 Lean Basics 1 Rev.04 65 Self Assessment for Supermarket GBE-KPO-2-001-00 Lean Basics 1 Rev.04 66 Inventory Tracking Sheet Inventory Tracking Sheet GBE-KPO-2-001-00 Lean Basics 1 Rev.04 67 Where to Learn More Discussed in “Lean Thinking” by James Womack Further developed and documented by the Lean Enterprise Institute of Brookline, Ma. as “Learning to See” Find additional information at: www.Lean.Org GBE-KPO-2-001-00 Lean Basics 1 Rev.04 68 Thank you Design. Build. Ship. Service. 69
