9 Lean Enterprise Pack Seal Case Production Control Constrai

9 Lean Enterprise Pack Seal Case Production Control Constraint 2 Push Mat\'l Flow Electronic Info. Process Box Or rganization Information Manual Info. No. of People Pull Mat\'I Flow C/D = 3 min Uptime = 1000 480 min. Avai MWF STD 36 Cases Data Box Shipping Inventory Auto Mat\'I Flow Quick Change Standarcd FIGURE 2-2 Value Stream Map Icon Designations from 13 days to less than one day, and eliminate faculty involvement. New student application processing time was BENEFITS TO LEAN ENTERPRISE The Tyco Flow Control plant in Chennai, India, is a good reduced from 88 days to less than one day. The students example of the benefits that can be achieved with lean were not able to map the process, because the system was enterprise. Some of the results were as follows: on-time completely out of control. delivery improved by 94%; lead time reduced from 150 days to 56 days; material movement reduced by 68%; machining lean enterprise to improve quality, safety, and cost, as well as capacity increased 200%, cycle time balanced; and incom- survive an accreditation audit 11 ing inspection reduced from 16 days to one day.8 Heartland Regional Medical Center in Marion, IL, used The success of Toyota is ample evidence that lean enter- prise is an effective improvement system for manufacturing by improving quality, eliminating waste, reducing lead time and reducing total costs. Other types of organizations such as construction, education, and health care can also benefit from lean enterprise ADDITIONAL COMMENTS This chapter would not be complete without mentioning the Toyota accounting system. It is somewhat like a small store where performance is measured by the difference Veridan Homes of Madison, WI, reported the following between the income that goes in one pocket and the cost lean enterprise results: drafting time reduced by more than that goes out the other pocket. Accounting tracks what one hour, inspection reduced by 50%; defects reduced by goes in the plant and the product that goes out it is not more than 50%; and cycle time reduced from 32 to 15 days. concerned with the internal cost as a measure of per- Tracer Industries Canada Ltd. reported that total design formance. In the Toyota Production System (TPS), the work provides all the information needed to control the time was reduced from 20 days to 1.2 days.9 At the University of Scranton, marketing students were operations. able to reduce the admission office\'s response to inquiries EXERCISES EXERCISES 3. Use the 5S\'s to organize a workplace. 4. Describe the difference between Kaizen and a Kaizen Describe the difference between waste and a value- added activity and give examples for different types of organizations. Give examples of the four types of waste and the seven categories of waste for different types of organizations 1. Blitz 5. Describe the purpose of the value stream map 6. Working as a team of three or more people, deter- 2. mine how the lean fundamentals of flow and inventory

Solution

Transport: It involves goods being moved about. Taken to an extreme, any

movement in the factory could be viewed as waste and so transport minimisation

rather than total removal is usually sought. In addition, double handling and

excessive movements are likely to cause damage and deterioration.

3 The transportation value stream map

Value added is what the end customer pays for. However, it should also be emphasised

that he has to perceive a benefit of what he is paying for, especially in a difficult

economic environment. A value-adding activity is considered to be any activity that

contributes to deliver that benefit appreciated by the customer. In the supply chain, the

series of value-adding steps from the raw material source to the end consumer is called

the value stream. It could be argued from the activity definitions by Monden (1993) that

all freight transport should be classed as waste or as a non-value-adding activity. For

example, the most effective scenario would be for the manufacturing plant to be located

next to the retail outlet or customer thus, minimising the transport distance covered.

However, in the real world this is rarely the case; so the function of transport in moving

goods closer to the end consumer can be said to be a value-adding activity.

By measuring the relative proportions of value-adding and non-value-adding

activities in road freight transport and eliminating the exposed waste activities, the

transport portion of the supply chain can be improved (see Figure 1). It is important to

stress, though, that the supply chain should be viewed as a process. The ultimate goal

should be to optimise the value-adding activity across the whole supply chain, not purely

to pursue a goal of optimising transport in an isolated fashion.

The definition of the TVSM is undertaken in this section. First, it is necessary to

determine the relevant performance metrics and waste types to be identified. Then, a

conceptual structure for the TVSM is delineated with the purpose of guiding the process of waste identification

Because the primary focus is on the identification and reduction of waste associated with

the units of transportation which represent a high investment to the company, it will be

expected to look for the ideal performance such that;

• all vehicles in the fleet should be in transit (but the ones in preventive maintenance)

• 100% of the time (24 hours)

• fully loaded both ways; to the client and back, satisfying weight and volume

restrictions

The transportation value stream map (TVSM) 223

• travelling the minimum distance.

Any situations departing from the previous conditions would lead to waste generation. In

summary, the goal is to obtain 100% vehicle utilisation and performance. As introduced

in the previous section, waste analysis will be associated with the determination of the

four efficiency factors leading to the estimation of the TOVE index; administrative and

operating availability, performance and quality. Hence, in addition to the wastes given by

Simmons et al. (2004), we suggest the consideration of the following wastes (as shown in

Figure 2) to determine vehicle administrative availability.

• Non-scheduled time. It relates to partially using the time of the day for the job, i.e.,

only one eight-hour shift per day.

• Vehicle scheduled maintenance time. Time required for preventive maintenance.

Additional wastes considered to determine operating availability efficiency are:

• excess customer service time

• vehicle breakdowns and non-scheduled or corrective maintenance

• vehicle waiting time at DC.

Quality wastes considered relevant are:

• product defects originated by handling and routing

• percentage of clients not served by the route

• percentage of demand not satisfied in a route.

Additionally, excess distance travelled per route over the minimum required would be related to vehicle performance efficiency index.