Lean production optimization

[:bg]

“Just in time” (Just in Time) in Bulgarian production.
Lean transformation. Analysis, planning, implementation, stream optimization. Results.

The project, which we will present to you aims to acquaint you with the main stages through a real example, which includes the implementation of our model – “World class manufacturing”. The project is implemented in a Bulgarian enterprise with mass production, starting at the beginning of 2014 Mr, and the plan for its completion is in the middle of 2015 year.

We were invited by the management of the enterprise with a request to consult there on the implementation of Lean production – (Lean manufacturing). At our initial meeting, the main issues were hinted at – low labor productivity, difficulties in fulfilling orders, large nomenclature, need to work with large and small volume orders at the same time.

When we visited the production this, what impressed us was the lack of clarity about the flow of the materials on the one hand and the large volume of work in progress (NZP) in the line on the other. It was literally difficult to see the operators and machines from the material and semi-finished rooms. Labor productivity was low – around 50% from people's movements apparently did not add value to the product (moving, transfer, transfer of materials, waiting etc.).Before_Project_JIT_1

We started by familiarizing the company's team with Lean principles and techniques, through an abbreviated 3-day workshop, based on our core course of study. The workshop focused on modules, which we thought, that are of greatest importance to the company.

Since the enterprise is large, with the management, we decided that the implementation would take place in stages in the production departments. Therefore, after the seminar, we determined “pilot area” for implementation, we chose a team leader and formed a team of specialists working in the area. They had to, with our assistance, do the Lean transformation there.

We proceeded to analyze the current state and develop the the value-added stream map – VSM. The analysis showed large “excesses” throughout the flow of materials with many NPPs. The detections of operation times showed large imbalances and operator waiting. Separately, the congestion of the lines with PPE further worsened labor productivity.VSM_02.0_IMAG4688

The very structure of production contributed to these problems. Over time, the company had gone through a period of intense growth and the grouping of machines was done with a view to technological specialization in the sections.

After analyzing these problems, we decided, that the main role here will be played by the module Production “Just in time”.

We started the implementation by considering a new production structure and approving a new one master plan (layout) on “the pilot area”. It was an interesting moment in our work, that before we start the project, the management of the enterprise was discussing options and was willing to invest in expanding the workshop building, to solve problems with organization and flow of materials. In our opinion, this was unnecessary and the funds invested for this would be superfluous. The company team, with guidance from us, developed a new machine allocation plan, in which it was bet on product specialization of the sections. It was clear, that even in the current space a good organization of the main activity can be achieved, and subsequently it turned out, that the space is enough even to install new machines.Layout_3

In addition to the initial analyses, a number of other analyzes were made on product nomenclature and cycle times on operations, in order to achieve an optimal distribution of work on the lines and to balance the workload of the operators.

We made a work plan for the implementation of the change. In it, we have included as separate points all the Lean tools, which were to be implemented. Here are some of the activities, which covered: the implementation of the new structure, operations analysis, improving the micro-organization of workplaces, improve the condition of the machines, adoption of basic principles for production planning and leveling, reduction of inventory between lines, etc.Lean_Working_Plan_04.1

The execution of the plan took approx 6 the month. In the course of it, additional analyzes were made, which required adjustments to activities. After its implementation “the pilot area” was completely changed. The company's customers commented, that they see a new production.

After the Lean transformation of the area, proceeded to the deployment of the project in other areas as well. Similarly, there, too, it began with an analysis of the state, VSM – maps and a general improvement plan was drawn up covering a period from the middle of 2014 Mr. until the middle of 2015 Mr. Similar to the pilot area, here too, a product rather than a technological grouping of the machines by section was preferred.

Although, that the plan is not complete, even towards the end of 2014 year the company achieved significant results from the implementation of Lean tools. First of all, clarity was created in the material flow in production. A large number of cross and return movements of raw materials and workpieces were eliminated. The volume of unfinished production blocking valuable financial resources has been drastically reduced. Reduced redundant movements and unbalanced work, which led to an increase in labor productivity.After_Project_JIT_1

We'll add measurable results below, matching end of 2013 with the end of 2014 Mr., derived from official reports.

Results in terms of labor productivity:

  • Increasing labor productivity with 23 %.

Results in terms of production cycle time (lead time):

  • Reduction of the production cycle with 55 %

Inventory results (work in progress):

INVENTORY IN PRODUCTION
Pointer Units 2013 2014 Difference % Difference
A B C D E=C-D F=E/C %
Details in
“The pilot line”
(no.) 229,265 41,558 -187,707 -82%
Details throughout the production (no.) 435,650 111,943 -323,707 -74%
Value of details in “The pilot line” (BGN) 506,649 144,322 -362,327 -72%
Value of details throughout production (BGN) 1,111,163 445,983 -665,180 -60%
Details in stock for “The pilot line” (no.) 164,828 34,556 -130,272 -79%
Stock detail value for “The pilot line” (BGN) 185358 36154 -149,204 -80%

[:]

Date and place:
Price and discounts:
Lecturer:
TRAINING REGISTRATION
Topic and date of training in. Plovdiv *
Name and surname *
Email *
Phone number *
Number of participants
Discount code
For partners from the Chamber of Commerce and Industry - Plovdiv
EIC
Privacy Policy *
INQUIRY ABOUT COMPANY TRAINING
Name *
Email *
Telephone *
Inquiry
Privacy Policy *