Application of Lean Tools and Techniques for Continues Improvement of Electronics Manufacturing's - Term Paper Example

Name: Tutor: Application of Lean Tools and Techniques for Continuous Improvement of Electronics Manufacturing’s Lab Course: Date: Table of Contents 1.0 Table of Contents 1 Introduction 3 1.1 Lean Tools and Techniques for continuous improvement is workplace 3 1.2 Problem statement 5 Major international businesses are trying to adopt the new initiatives to run their businesses in order to survive within the new and competitive marketplaces. As a result, lean manufacturing is considered as one of the initiatives that basically deal with cost reduction through the elimination of the non-value added activities in companies that practice it, for instance, in electronic manufacturing labs. Such tools and techniques of the lean manufacturing are widely being utilized in discrete industry. However, the application of lean manufacturing to continuous processing industries has over time been very few. Majority of the managers have as well been so reluctant to adopt the lean manufacturing tools and techniques to continuous processing industries due to reasons such as large flexible machines, long set-up times used in characterizing the process industries, high volume as well as low variety of products. 5 2.0 Literature review on Lean Tools and Techniques 6 2.1 Introduction Several organizations internationally are implementing the Lean Manufacturing. However, only a few of them have achieved a considerable competitive advantage over other competitive organizations. One major reason that can be attributed to it is lack of understanding among the managers. This is in regard to the kind of changes that will take place within the organization when transformed by lean manufacturing principles and practices. Although the Lean Manufacturing tools, for instance, Value Stream Mapping can possibly act as the blueprint for such transformations, it is faced with various problems. As a result, researchers have suggested that the use of simulation in conjunction with the value stream mapping can help to overcome these problems. The lean manufacturing principles are required to be applied in every aspect of value stream through the elimination of wastes so as to reduce costs, increase sales, generate more capitals as well as stay competitive within a growing and developing global market. 6 2.2. Previous Studies on 5S and Spaghetti Diagram 7 © After the improvements have been made 9 Drawing the Value Stream Maps 14 Using Gadgets to Visualize Value Stream Data 14 Using Charts to Visualize Value Stream Data 15 2.4 Findings from the Literature Review 17 2.5 Summary 18 3.0 Recommendations for improvement from the 5S study 18 4.0 Conclusion 4.1 Conclusion and Key Findings 19 Bibliography 22 Introduction 1.1 Lean Tools and Techniques for continuous improvement is workplace The new uprising within the manufacturing of goods and services sector has caused various challenges for electronic industry. The customer driven as well as highly competitive market has not provided the old-fashioned managerial style with adequate tools to deal with these emerging challenges. Such factors results into enormous challenges to all companies to search for some other new tools in order for them to continuously move up the ladder within a competitive, growing and global market (Wood 2004). For instance, as other companies make their growth and development based on the economic constancy, some other companies are required to apply much effort due to lack of being knowledgeable about the need to change customers’ mind-sets and make use of the cost practices principles. As a result of the need to overcome such situations and emerge as more profitable companies, a number of the manufacturers have turned out to the lean manufacturing principles in order to elevate their managerial styles for enhanced performance within their firms (Flinchbaugh 2007). The basic ideas underlying lean manufacturing system that has made it to be in practice for several years, particularly in Japan include cost reduction, employee empowerment as well as waste elimination. This implies that lean manufacturing principle is to operate within every aspect of value stream through the elimination of waste purposely to reduce costs, increase sales, generate more capital and remain on the competitive edge within the growing international market. Value stream is perceived as the specific activities in the supply chain necessary for designing, ordering and providing a particular product or unique value (Hines & Taylor 2000). Furthermore, the term “lean” as defined by Womack and colleagues denotes a certain system that makes use of fewer inputs for creating similar outputs in relation to those created or manufactured by a given traditional mass system. However, this should be aimed at increasing the provision of a variety of products and services to the end customer. Therefore, the resounding principle of the lean manufacturing is basically to make cost reductions through a continuous improvement that will lead to ultimate reduction of costs incurred in the creation of products and services rendered, and thus raising more profits. Once companies identify the key sources of waste, then tools such as just-in-time production, continuous improvement and the production smoothing becomes necessary in guiding such companies through the corrective actions in order to eliminate waste. For instance, Cellular manufacturing is considered as one of the major cornerstones for individual s or companies that intend to turn into lean. Continuous improvement is also another important principle applied in lean manufacturing. 5S is the most effective tool used in continuous improvement and considered as the basis for any effective lean company. 5S comprise of the five Japanese words namely, Seiri (Sort), Seiso (Sweep and Clean), Shitsuke (Standardize), Seiketsu (Systemize) and Seiton (Straighten). It is a tool that focuses on searching for wastes and eliminating it. The 5S taken together suggest s good housekeeping as well as enhanced workplace organization (Womack & Jones 1994). 1.2 Problem statement Major international businesses are trying to adopt the new initiatives to run their businesses in order to survive within the new and competitive marketplaces. As a result, lean manufacturing is considered as one of the initiatives that basically deal with cost reduction through the elimination of the non-value added activities in companies that practice it, for instance, in electronic manufacturing labs. Such tools and techniques of the lean manufacturing are widely being utilized in discrete industry. However, the application of lean manufacturing to continuous processing industries has over time been very few. Majority of the managers have as well been so reluctant to adopt the lean manufacturing tools and techniques to continuous processing industries due to reasons such as large flexible machines, long set-up times used in characterizing the process industries, high volume as well as low variety of products. The study is aimed at investigating how lean manufacturing tools and techniques can be well, adapted from a discrete to continuous manufacturing surroundings and to assess their benefits at electronic manufacturing labs as an area of industrial concern. This is based on the study hypothesize that various opportunities exists for improvements within the process or electronic industries if the lean tools are applied (Lavinson 2002). 2.0 Literature review on Lean Tools and Techniques 2.1 Introduction Several organizations internationally are implementing the Lean Manufacturing. However, only a few of them have achieved a considerable competitive advantage over other competitive organizations. One major reason that can be attributed to it is lack of understanding among the managers. This is in regard to the kind of changes that will take place within the organization when transformed by lean manufacturing principles and practices. Although the Lean Manufacturing tools, for instance, Value Stream Mapping can possibly act as the blueprint for such transformations, it is faced with various problems. As a result, researchers have suggested that the use of simulation in conjunction with the value stream mapping can help to overcome these problems. The lean manufacturing principles are required to be applied in every aspect of value stream through the elimination of wastes so as to reduce costs, increase sales, generate more capitals as well as stay competitive within a growing and developing global market. According to Hines and Taylor (2000) value stream are the specific activities in the supply chain necessary in designing, ordering and providing a particular product or certain value. Wong and Ali (2009) examined the adoption of the lean manufacturing within the electrical as well as electronics in Malaysia. The outcome of the survey indicates that a number of companies in both electrical and electronics industry are committed to the implementation of lean manufacturing in their businesses. This is because most of the companies in Malaysia are moderate-to-extensive implementers. Lean’s popularity and success in production environments has influenced its consideration in the rest of supply chain management. Over the years lean has been applied solely within the manufacturing environment, today the principles of lean are applied to theories, methods as well as activities with a focus on the elimination of wastes in order to speed up and enhance processes within a working environment (Holweg 2007). 2.2. Previous Studies on 5S and Spaghetti Diagram 5S comprise of the five Japanese words namely, Seiri (Sort), Seiso (Sweep and Clean), Shitsuke (Standardize), Seiketsu (Systemize) and Seiton (Straighten). It is a tool that focuses on searching for wastes and eliminating it. The 5S taken together suggest s good housekeeping as well as enhanced workplace organization. On the other hand, Spaghetti diagrams are considered as great way to examine the material flow within a process as well as illustrating the wastes in transportation and motion. The wastes in motion are to be eliminated so as to produce an extra lean operation as illustrated in the diagram below. Spaghetti mapping is perceived to be a handy tool to be applied in visualizing workflows during the implementation of a 5S (Hicks 2007). First the process for mapping has to be selected and then a follow up on a person has to be made through the existing state work process. A discussion is made on the current state about the total distance covered in traveling and how it can be reduced through moving equipments or bringing the material closer. A map is drawn for the future state and implemented, verification of the future state. Finally, communication is made to the users to make it permanent (Ray , Zuo & Michael 2006). Source: Energy literacy.com2 An example of the Operator Flow below provides the ideal process for creating a separate spaghetti diagram indicating the ideal state of the flow for each that is involved in the elimination of as much non-value added tasks as possible (Pettersen 2009). (A) Before (B) Ideas to improve © After the improvements have been made The diagram below is based on the earlier days of Lawrence Livermore National Laboratory of spaghetti diagrams. From this energy flow illustration is very clear and easier observe that the height of lines can end up at the height of other lines on another side in comparison to the newer versions identified with oversized boxes which acts as labels (Gunasekaran 2000). Source: Energy literacy.com2 Another diagram illustrated below is an article resented by Howard Haydem. The figure comprise of the electric utilities, suggesting that though there is no graphical allocation of the 21% as the low grade heat from the generated electricity , industries will have to go from the 27% to 37% of the total energy used. This is only if allowed to be corrected by the utility’s waste heat, and a result the residential or commercial would increase from the 25% to 37% (Pettersen 2009). Source: Energy literacy.com2 Use of Spaghetti Diagrams to Visualize Motion The floor layout below is an eVSM picture with paths drawn on top in order to show the motion. Motion paths ARE color-coded and a report is generated through an automatic path length calculation. Pictures from search engines such as Google Earth or some other mapping tools are used instead of the floor plans when operating Enterprise material flows. 5S Event case study on safety office was carried out. The challenge was that when the organization extends one area, it implies that one area has to loose space which was the case with the integrated healthcare system. This is particularly the safety office was to be reduced by a 60% in order to accommodate the expansion of an emergency department. Therefore, a ten-member multi-disciplinary team addressed the challenge to the 5S safety office as well as reduces the required space. The key target areas for the 5S Event included Quality Compliance and the Safety Office. At the workshop actions were undertaken that resulted into downsized incident command centre efficient and ready for use. It also contributed to development of a process as well as color-coding document management within the office. In another case study, 5S One-Day Blitz was implemented at Medical Device laboratory as the client industry. The EMS created a custom ½ day 5S training and ½ day for hands-on 5S implementation program specifically for a quality testing lab in medical device organization in Orange County. The 5S team applied the principles of quality control testing and the results were significant reductions in the distances travelled and enhanced productivity. This led to various changes such as personnel layout, tools as well as supply layout and implementation of different visual controls (Gonc & Watson 2004). 2.3 Previous Studies on Value Stream Mapping A value stream is considered to be a collection of the entire actions value added and the non-value added that are needed in carrying out either a product or a category of products that share resources in the main flows, for example, from the raw material to customers’ arms (Rother & Shock 1999). Such actions include the ones within the overall supply chain such as information and the operation flow that are considered as the core of a successful lean implementation. This identifies value stream mapping as an enterprise improvement tool which is essential in visualizing the whole production process. It is a tool that represents both material and the flow of information. According to Rother and Shook (1999) the goal of mapping is to identify the entire types of waste within the value stream as well as taking necessary steps to eliminate them. In addition, value stream involves dealing with a big picture and not simply individual processes, facilitating the entire flow rather than concentrating on the optimization of pieces. Value stream mapping creates a common language used in the production process which influences development of thoughtful decisions relevant for the improvement of business processes (McDonald, Van Aken & Rentes 2002). Value Stream Mapping is considered to be a powerful tool necessary for analyzing both information and the material flow either throughout or between organizations so as to identify as well as plan for improvements (Hampson1999). In addition, the value stream mapping technique provides the transparency in reducing the inventory and improving the lead time, plan and identifying the kaizen events for optimum effectiveness. It also allows participants from various parts of an organization to expand their understanding of the general information and the material flow. For example, iGrafx understands the significance of having the Lean practitioners walk into the shop floor and then creating the Value Stream Map by use of hands. It can also be understood that having the capability to share such maps for both review and analysis with some other related parts of the organization is crucial to reaching the main Lean objectives (Savsar & Al-jawini 1995). Therefore, to effectively meet such a need, iGrafx added the Value Stream mapping capabilities in the iGrafx resolution offering. Today, iGrafx® software has turned out to be the perfect remedy for converting maps that are created by 'walking the floor' into the electronic format to ease their sharing, archival as well as management. Furthermore, iGrafx provides the leading process of visualization and modeling tool that assists organizations to achieve their business process excellence. As a result of the state-of-the-art diagramming capabilities, professionals who are lean oriented can easily generate Value Stream Maps such as pick charts, the SIPOC diagrams in a similar manner to the one illustrated below (Zayko, Broughman & Hancock 1997). Drawing the Value Stream Maps The diagram below is current state of a value stream map for the lean manufacturing initiative that can be drawn within 20 minutes and completed with data. This enhances the viewing and ease of modification made on the map and data values. Using Gadgets to Visualize Value Stream Data In the diagram below, it takes only 4 clicks in order to add or size the family of the red bar gadgets so as to visualize the NVA times on the map. Therefore, the Visual gadgets can be easily added to a given map variables to result into having a hide or the show capability. Those Visual gadgets examined "in-place" on this map and updated with the map data are the new eVSM innovation that truly enables to visualize and make the relevant decisions about the value stream characteristics (Hunter, et al. 2004). Using Charts to Visualize Value Stream Data Drawing the cycle time or the taken time chart for the map since the integrated charting tool is designed to support the typical lean charts to include the Pareto charts. Just 2 clicks, then any map data are charted. In a case study that involved the industrial application of Value Stream Mapping in the Fabrication Job-shop, the traditional Value Stream Mapping method was discovered to be inadequate for mapping its flow network. As a result, a proposed approach of the Value Network Mapping was created, applied and tested for the general application in the same manufacturing facilities. The study indicates that Value Stream Mapping does not incorporate the required material for handling the information between a pair of consecutive process box, for instance, the batch size transfer, product batch frequency transfer between two process locations, the type of equipment to use for material handling, travel time and distance. Due to such limitations, an alternative method known as Value Network Mapping (VNM) was proposed as away to extend the existing Value Stream Methodology in order to handle the fabricated products together with complex BOMs. This new approach assists in identifying and merging the multiple flow paths within a value stream which are identical. It also considers the all in-house as well as outsourced parts that compose the BOM and an assembly structure of a product rather than focusing on the major components first (Moore & Scheinkopf, 1998).  Figure: Comparison of Value Stream Mapping (VSM) and Value Network Mapping (VNM) 2.4 Findings from the Literature Review A number of organizations internationally are implementing the Lean Manufacturing. However, only a few of them have achieved a considerable competitive advantage over other competitive organizations. One major reason that can be attributed to it is lack of understanding among the managers. Although the Lean Manufacturing tools, for instance, Value Stream Mapping can possibly act as the blueprint for such transformations, it is faced with various problems. As a result, researchers have suggested that the use of simulation in conjunction with the value stream mapping can help to overcome these problems. Most of the companies in both electrical and electronics industry are committed to the implementation of lean manufacturing in their businesses (Moore & Scheinkopf, 1998). 2.5 Summary The lean manufacturing principles are required to be applied in every aspect of value stream through the elimination of wastes so as to reduce costs, increase sales, generate more capitals as well as stay competitive within a growing and developing global market. The use of simulation in conjunction with the value stream mapping can help to overcome the problems faced with it. 3.0 Recommendations for improvement from the 5S study In considering a shop floor with 3 machines, for instance the stencil printer machine, pick & place machine, reflow oven, a supply cabinet, a chair for employing to sit on, 2 trash bins, a pallet with chair for putting complete components or goods on. A 5S should be implemented since it is the most effective tool to be used for continuous improvement of these machines, chairs and the completed components (Detty & Yingling 2000). The 5S will involve sorting the machines and the completed components, sweeping and cleaning the shop flow, standardizing the completed components as well as systematizing their appearance, and straightening the management process of such goods in the shop. It is a tool that focuses on searching for wastes and eliminating it. The application of 5S taken together suggests s good housekeeping as well as enhanced workplace organization (Chaneski 2005). 4.0 Conclusion 4.1 Conclusion and Key Findings The basic ideas underlying lean manufacturing system that has made it to be in practice for several years, particularly in Japan include cost reduction, employee empowerment as well as waste elimination. Value Stream Mapping is considered to be a powerful tool necessary for analyzing both information and the material flow either throughout or between organizations so as to identify as well as plan for improvements. Spaghetti diagrams are considered as great way to examine the material flow within a process as well as illustrating the wastes in transportation and motion. Spaghetti mapping is considerably a handy tool to be applied in visualizing workflows during the implementation of a 5S. 5S is the most effective tool used in continuous improvement and considered as the basis for any effective lean company. 4.2 Recommendations for future work Lean manufacturing principle should operate within every aspect of value stream in order to eliminate or reduce costs, increase sales, generate more capital and remain on the competitive edge within the growing international market. Once companies identify the key sources of waste, then tools such as just-in-time production, continuous improvement and the production smoothing should become necessary in guiding such companies through the corrective actions in order to eliminate waste. Lean manufacturing operates on a simple principle, and hence should be based on examining the bigger picture. At least organizations need to shift away from departmentalized thinking and move towards considering an organization as a single entity. Many manufacturers should realize the importance of lean manufacturing principle in order to look into the bigger picture as even more significant in today’s world. This is because Lean manufacturers are currently going out from their normal or original manufacturing premises and it is emerging as lean enterprise by treating all its customers and suppliers as important partners. As a result, extra edge in current cost as well as time competitive markets is offered. This will keep the organizations more strong in all the three key conventional competition points, namely Price, Quality and Delivery. At the end Lean enterprise owners will be able to deliver more quality products quickly at a low price. In order for Lean manufacturing to operate effectively as a strategy for organizations to remain competitive through the identification and elimination of wasteful steps in both products and processes, practices such as improvement of equipment reliability, pull production, continuous flow production as well as improvement and quality source should be taken into consideration. Bibliography Chaneski, W.S., 2005, Lean Implementations Don't Fail, Modern Machine Shop, 77(9), 44-52. Detty, R.B., & J.C, Yingling, 2000, Quantifying the benefits of conversion to Lean Manufacturing with Discrete Event Simulation, International Journal of production research, 38(2), 429-445. Flinchbaugh, J., 2007, Lean is born from How We Think: Fostering Sustainable Business and People Success through New Ways of Thinking, Products Finishing, 71(9),34-35. 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