Monday, January 30, 2012

The 8th waste - TPS (Toyota Production System)

What is the 8th waste in the Toyota Production System and does it really matter?

The 8th waste in TPS is when the management of a business in this case manufacturing, does not lean on their teams experience and abilities. They do not see themselves as a part of a team but as a part of a pyramid scheme that directs from the top down. As Toyota has shown us, this creates many limitations on the business as a whole and is very inefficient. There are times where a business needs direction from the top down, however, there are also many times where the business needs to rely on the experience and knowledge of the team as a whole rather than a few select individuals.

For example: When a local manufacturing company is launching a new product and they want to setup the most efficient way of shipping WIP between two plants. The product, in this case, was originally produced by a different supplier. They were using a large inefficient WIP rack that would only hold a few parts per rack. Only 8 of these racks would fit on a 53' truck and they would be shipped between plants. The system sounds fine but when we look at the value-add content within the process, we find that the system also includes waste.

Parts were being shipped from plant A to plant B. Plant B would remove the parts from the WIP racks and then ship the empty racks back to plant A. Plant B would also then continue processing the parts and then pack and ship the parts in a new container to the customer.

Plant B was shipping empty WIP racks back to plant A. Why? Is this necessary for the process to work correctly? Is this wasted money? Is this wasted labor? Is this wasted space? Plant B & A had to store and handle these large 2,400lb WIP racks. Plant A & B had to handle the large WIP racks on and off the truck each time.

We determined that the usage of the WIP racks was not necessary between the two plants. The process was modified to be as follows. Plant A would pack parts in the shippable container that would end up going to the customer. Plant B would remove the parts from the packaging without breaking down the container. Plant B would then process the parts and return them to the shippable container. Plant B would then mark that container as fully processed and ship it to the customer. This eliminated a number of things. First off, the extra WIP racks could be used internally at plant A without being shipped to plant B. Second, the amount of truck shipments between the plants was decreased by more than 50%. Third, the amount of handling was decreased by more than 25%. Empty racks were not being unloaded and then loaded onto trucks. You can not make money off of shipping an empty rack. ( There are cases where returnables do make a lot of sense. However, this is not one of those situations. )

In this case, if the upper management did not rely on their team to help provide constructive feed back regarding the issue, they would only have their own experience and knowledge to make decisions from. They may have never seen the problem that needed correction. They may have never saved money.

It is important to include your team and also use their knowledge and experience when improvements are needed within the manufacturing facility.

Friday, December 23, 2011

Residential Energy Conservation

There are many ways to save on Energy costs as it relates to our homes. One of the easiest ways to save on utility costs is to replace your light bulbs with Energy Efficient ones. They will use 1/3 the electricity and you will notice a reduction in your monthly bill immediately.

When the energy efficient bulbs first came out, I was rather skeptical of these claims because it was a new technology. Sometimes new technologies get over rated. I reluctantly decided to invest in the expensive bulbs and place them all over the house. Replacing everything I could think of. After a few months of using the bulbs, I noticed that the average cost of our electric bill was reduced by $20 / month! This is because we like to keep the lights on for long periods of time which can run up a bill. With the new bulbs, we were able to keep the lights on and reduce our energy consumption and avoid spending the extra $20/month. The other thing that came into focus was the realization of how much we were leaving lights on in rooms that were not being used. (just wasted energy)

As I began to become more experienced with these new bulbs, I decided that they were not ideal for certain locations within the house. If you have ever used them, they require a bit of patience when waiting for them to come on. So, to get around this, I decided to pick strategic locations in the house that would not have their bulbs replaced.

For instance, inside my bedroom closet, when I wake up in the morning and am getting ready for work, I want the lights on. I do not have time to wait - nor do I want to wait. So this is one location that I decided to place a regular bulb. Also, the light is only on for a short period of time each day, so it really isn't one that is going to raise my electrical consumption very much.
Another location is at the top of the stair cases and near regularly used doorways. Like the entrance from the garage into the house. These are areas where it is important to be able to see in the dark "NOW" and not have to wait for the bulbs to heat up. Again, we only keep these lights on when we need them and run the more efficient lighting for extended periods of time to keep the electrical costs down.

In future blog posts, I will review other ways to save on residential home energy consumption.

Thursday, October 29, 2009

Investment Casting - An age old process that still works!

Investment Casting is an age old process that is over 6,000 years old.

The process involves creating a mold in which a liquid material is poured into and then dried or cooled to create the desired shape/object. Materials typically used are: Metal, Plastic, Concrete, and Plaster. The most common use of this process is in casting metal objects.

This process is flexible enough that complicated shapes and designs can be used to create objects that are ultimately cast in one piece. Where other processes may demand that the object be created in multiple pieces which then need to be assembled post process. Since Investment Casting is so flexible, it allows for the parts to have a much nicer aesthetic appearance and perform as well or better than a part with multiple pieces.

So your asking yourself, how does the process work? Well, you start off with a CAD design model. Ensure that your data is correct and then move onto creating an aluminum wax mold. The mold will be used to create a wax version of the object represented in the CAD model. During this process you will make determinations as to where you want to gate the part both as a wax model and ultimately as a casting. This will then get designed into the aluminum mold. The material and it's shrink rate must also be taken into consideration when designing the mold.

When the mold is finished and all cuts are verified, the mold is mounted on a machine that injects hot wax into the open cavity. This creates a wax version of the object you are seeking to cast. The actual part in wax.

Several of these wax parts are initially molded. It mainly depends on how many parts your ordering and how many will fit on the TREE based on the size and shape of the part. You may need to create multiple TREEs.

Once all of the parts are connected to the tree, they are then put through a ceramic shell building process. This process creates a hardened ceramic shell around the entire part tree.

After the drying process is complete, the TREE is placed into an oven to complete the process. First to harden the ceramic material that makes up the shell. Second to melt out the wax from the inside of the new mold. The wax is reusable, but may need to to have an additive mixed back into it as it's chemical structure does change after exposure to the extreme heat. Virgin wax should always be used in the molding of the actual parts. This ensures part stability and detail.

The TREE is removed from the oven and set aside to cool and harden.

Now, we are ready to make our castings. Re-heat the TREE to a specific temperature to ensure that there is not a SHOCK experienced by the mold when the liquid hot metal is poured into it. Take the TREE out of the oven and place it in the area where the metal can be poured into it. Pour your hot metal into the mold and fill it up. Now quickly take the filled TREE and place it in an air tight chamber to kill off the oxygen and allow for the part to cool .

Once cool and solid, the ceramic shell can be removed from the solid metal tree encased inside. This can be done several ways, one way is to use a machine that vibrates the ceramic material to break off the shell. After the shell is removed it's time to separate the parts from the core of the TREE. This is done by the preferred cutting method. Some techniques used are: water jet, laser, rotary cutting disk.

After the part has been separated from the Core of the TREE, it's now time to smooth out any parting lines and finish off the outside surface of the part. Once finished, you can use your part.

The goal of Investment Casting is to create an accurate representation of an object at a low cost in as little steps possible with the desired material. Investment casting can eliminate many post operations that would be required by other processes.

Tuesday, October 6, 2009

Management

What are the roles of Management?

The main Pillars are: Planning, Organizing, Leading, and Controlling.

* Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization and it's resources. Written plans are ALWAYS needed if you desire to have a higher chance of obtaining a positive outcome. Create an outline, a time line, know who is going to participate, know which company resources you must draw on to achieve the goal. Create Contingency plans after performing a risk assessment throughout your value stream. Know what your value stream is!

* In organizing, managers create the structure of working relationships between organizational members and resources, which best allow them to work together and achieve goals. Coordination of schedules, equipment open time, tooling, etc.. Lines of communication open up between the different members who will participate. Managers communicate information and actively listen to their experts and then use the constructive feedback to help mold and shape the plan and ultimately achieve the goal.

* In leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals. The function requires that a manager use different types of power, influence, vision, negotiation, and communication skills. The outcome of leading must be a high level of motivation and commitment by the participants. This is where the rubber meets the road.... Where the vision starts to become reality....

* In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance. It is ones ability to monitor and gain visibility into the daily tasks that are being performed to attain the goal. "It can be like the steering wheel of a great ocean bound ship!"


In management, there are multiple levels with each level requiring more responsibility and experience. The main categories of management are: Top Level, Middle Level, and Lower Level.

* Top level management - provides organization wide vision and helps to guide it to its goals. They get the birds eye view of what is happening throughout their organization and have the ability to keep things on track. This involves controlling the entire organization, all of its groups and all of its projects.

* Middle level management - helps to disseminate the vision and supervise the implementation of the items that lead to the goal. Their view of the daily issues is much closer than that of the Top level management. These managers usually have responsibility over many groups and/or projects.

* Lower level management - supervises the staff and/or production workers. They are the daily problem solvers. Their view is of a small collection of organizational transactions that take place. They are involved with every detail in relation to the collection of issues taking place within their group or project. Their view is much more narrow and focused in a specific area.

* Non-management - this level is made up of the actual staff who perform each daily task and are directed/supervised by the Lower level managers. The view for these individuals is focused on each task and it's outcome. Whether it be running a cash register in a store Or being a production line worker in a plant.



Managers need to be very people oriented. They need to have good body language and communication skills. They MUST be able to Listen Most of the time and Negotiate extremely well. Always being focused on ultimately increasing the organizations motion in a positive direction. All pride and ego aside...

Winston Churchill was a very Charismatic Leader. People viewed him as a Leader with Confidence, Energy, Integrity, Vision, and the ability to be decisive about his decisions that influenced many.

A manager is more than being a person who holds a position of power. It's about understanding what your role is and how you should conduct yourself while coordinating activities. It is important to know how and when to plan, organize, lead, and control. A Good manager will Listen Most of the time and talk less. They will also be able to coach and teach others in order to enhance the skills of their team.

As a Manager, you NEED to recognize that your teams success is your success. You NEED to be people oriented in order to make this happen.


A couple of quotes:

** " Leaders have followers. You think you’re a leader? Look back. If no one is following, you’re not a leader; you’re just taking a walk. " - Anon

**" Great leaders are almost always great simplifiers, who can cut through argument, debate and doubt, to offer a solution everybody can understand." -Colin Powell

Saturday, October 3, 2009

6S - Is it really worth all of the effort?

What is 6S? Well, to start off with this is a concept that has actually been adopted and used within different parts of the manufacturing organization. The application that we will be discussing will involve the manufacturing / production area of the plant.

Lets start off with what 6S stands for:

1 - Sort (Define what belongs in the workspace)
2 - Straighten (Organize the workspace, assign homes for each item)
3 - Shine (Keep the workspace clean, and items in their home)
4 - Standardize (Create a standard procedure throughout)
5 - Sustain (Follow the procedure - Management Driven)
6 - Safety (Implement Safety requirements and follow)


What really is the goal behind 6S? It's a methodology that enables the production space to be kept organized in a way that is standard. Everyone knows where things are, where they go, and it's obvious if things are missing or perhaps low in inventory.

The goal is to create a visual work space. Where an operator/manager can walk out into a particular area of the facility and instantly know whats going on around them through an organization method that is visually oriented. If done properly and well kept, the plant should look presentable with relation to a customer visit on short notice.

Pros of 6S:
--Clean appearance.
--Organized.
--Visual aids in place to communicate process to individual.
--Consistent look throughout the plant.
--Items are were they need to be and can be easily found.
--Helps to improve the companies appearance and brand during customer visits.


Cons of 6S:
--All employees must understand and buy into methodology.
--Management must also buy into methodology.
--The proper Management theology must be applied in order to sustain.
--Doesn't happen over night. Takes time to implement, train, and sustain.
--Requires a culture change for everyone at the company.

So, is 6S really worth it? I believe it is. It allows the operators who are performing the manufacturing operations to stay productive. They don't need to search for what they need. The items are easy to get. It helps to take away any confusion of how the process is laid out and suppose to work. Can make training new operators much easier and faster. Raw Materials also gain better location and placement which results in better process cycle times and more accurate inventory levels. And this is just the beginning...

Thursday, October 1, 2009

Takt time, Can it really effect my supply chain?

What is Takt time to begin with?
In simple terms it is defined by the following equation:
( Net Minutes Available to work / Units Required = Total Minutes of Work Per Unit Produced ).

Ultimately this is the optimum amount of time you have to produce an item in order to meet your customers demand. If you do not provide your service within Takt time, you risk creating a VERY unhappy customer.

In the manufacturing world, these problems can lead to shut downs, create long lead times, and large expensive inventories. Ultimately, a business could end up closing its doors due to the issue of not effectively meeting its Takt time.

Takt time is like the pulse of your manufacturing process. Very much like that of a beating heart in a person. If the heart stops, there are Major problems.

The goal is to be better than your Takt time. To have a process that is steady and efficient. Everything needs to flow according to your customers demand. There are many items that can affect your ability to meet or beat the Takt time requirements made by your customer. A few are: Material placement, Plant Layout, Process layout, Labor division, Plant Location, Inventory availability, A companies Cash Flow, the weather, etc.. . Each of these items needs to be constantly tuned and measured to help spur improvement. The items that are not controllable need to have the proper contingency plans in place to help promote success.

A Supplier may be able to meet your Takt time need. But it doesn't mean they are doing it efficiently and providing you a good cost. They may be taking the "Shot Gun" approach to manufacturing and be providing their service at a high cost!

This is why all Supply Chain Managers and Procurement Professionals need to be aware of this issue. They need to be able to spot a good supplier from a bad one. Even preferred suppliers can have these issues. You may not like your suppliers cost and desire a cost reduction. They may be responding with, “This is as good as we can do!” If you understand these principles, you will have a better idea of where to find your cost reduction when analyzing your Supply Chain value stream. The more efficiently your Supply Chain produces product, the more effective your spend will be.

Saturday, September 26, 2009

Purchasing groups in large companies are becoming more centralized than de-centralized? Why?

Having centralized purchasing can cut down on the labor force needed to perform the tasks of purchasing. It provides economies of scale since all requirements for many locations can be combined for negotiations. Policies and procedures can be unified and help reduce costs. It provides a high level of visibility into the products being delivered to each of the manufacturing facilities. It helps in making components common within the Engineering Development Design process. Why reinvent the wheel again?

Though, local buyers can also be of benefit. They realize the and appreciate the local needs and preferences for certain items. They can also help out with supply base contingency plans and provide insight into the items that uniquely effect that facility from a purchasing standpoint.

I believe that a mixture of having centralized and decentralized purchasing groups can help a company realize the benefits of both. Especially since we have become so advanced with the different means of communication available to us over large distances in little time.