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tunity indicator . . . Strategic options defined . . . LAN010608119718320507 12 *Data based on two sample work days, assuming an average possible output of 7 to 8 units Performance Indicator Measure November March June December Y1 Y2 Total cost Index 16 Productivity Man hours/unit Inventory ? Raw ? WIP ? F/G Days Days Days Quality First pass yield (pre run in) Percent Delivery Lead time total Lead time process Days Days Schedule attainment Percent Ontime delivery Percent 45 14 5 50 112 26 66 52 14 9 2 90 100 100 28 7 35 12 4 28 11 3 75 80 75 80 90 95 90 20 60 14 37 28 33 30 12 15 14 METRICS ROADMAP TO TARGET STATE EXAMPLE Cost Productivity LAN010608119718320507 13 CREATION OF THE TARGET STATE People system Operating system Quality system Business need Process and effect Delivery Reliability Minimum Lead time Lowest Possible Cost Zero Defect Total Quality Process F M S Automation J I T Element Over production Motion Waiting Inventory Rework Transportation Over processing Profitability Stable Employee Relations Human Resource Management Change management Work environment Organization structure Continuous improvement culture People Workplace anization TPM Process measurement amp。 review S S Standardized operations Machine design Line design Factory design Intelligent automation Poka Yoke Performance monitoring Problem resolution Continuous flow processing Takt time Pull system Leveled production Waste Competitiveness Maximized people contribution Lean manufacturing methodology Elimination of waste Enabler Sustainability and continuous improvement LAN010608119718320507 14 BASIC APPROACH 1416 weeks 2 weeks Current state assessment – target state design ? Business need validation ? Product and process profiling ? Problem identification ? Current state analysis ? Target state vision ? Quantification of opportunity ? Proposed tactical implementation plan ? Focus on major capacity losses ? Stabilization of equipment ? Process consistency and instation quality ? Standardized labor activity and processes ? Definition of core production system ? Performance metrics and dialog ? Controlled inventory ? Changeover time reduction activities ? Controlled flow patterns to minimize losses due to – Down time – Speed loss – Quality loss ? Consistency of production pace and output ? Demanddriven pull production schedule ? Direct feedback with upstream/ downstream customer linkages ? Improved munication with support departments (maintenance, scheduling, etc.) ? Auditing process ? Plan for sustaining support ? Ongoing 39。checkup39。 support Maintain Stabilize Flow Pull Next area Phase 1: confirm opportunity Phase 2: capture opportunity for model line Phase 3: Client self reliant to capture opportunity for next areas LAN010608119718320507 15 88% OTIF ? 60% stock not moving in 3 days EXAMPLE ANALYSIS (CONTINUED) Current state material and information flow diagram 4 weeks 1 week 1 weeks stock 693T Rolling OEE = 2040% c/o = 10 min Low levels of equipment performance Poor inventory management Accessories 452T High plexity and variable lead times 8,900 pc. Cleats 197,000 pc Up to 50% nonworking time 14,000 pc. Sleeves OEE ? 70% c/o = 6 min Job lists Job lists SUMMARY 5 times/day 5–20/day Quality of EDI information 50% orders without delivery date 3 weeks stocks 24% orders change within 3 days of delivery ? 65% stock not moving in 3 days COMPANY X Suppliers Customers Information flow Pushed material flow LAN010608119718320507 16 EXAMPLE ANALYSIS (CONTINUED) Future state material and information flow diagram Forecast Daily call off 200300T Rolling Coil c/o = 3m OEE +10% . day Accessories Sleeves day Daily list (T–1 or 2) Suppliers Orders with delivery date percent held ? Levelled to WACT ? Layout T1 Held Job lists (T–2 or 3) Customers Consistent lead times Make to box Make to box Orders fixed at T3 OEE increased by 1020% T2 Mixed pull system Company X SUMMARY Information flow Pulled material flow FIFO flow LAN010608119718320507 17 Total avail able time Nonscheduled time Available scheduled time Setups Breakdowns Run time Reduced speed Small stops Operating time = Start up slowdowns Rework/ scrap Production time Direct measure Indirect measure Availability ratio Performance ratio Quality ratio OEE X X = = = = The overall equipment effectiveness (OEE) chart is a tool that is useful in equipment intensive environments to prioritize the improvements 24 hrs. 4 hrs. 20 hrs. 2 hrs. 2 hrs. 16 hrs. 1 hr. 1 hr. 14 hr. .5 hr. .5 hr. 13 hrs. 54% OEE EXAMPLE ANALYSIS Overall Equipment Effectiveness (OEE) analysis LAN010608119718320507 18 EXAMPLE ANALYSIS (CONTINUED) Evaluation of 6step changeover reduction potential EXAMPLE E = External I = Internal 10 mins E 6. Standardize the new changeover procedure 10 mins I E 5. Reduce the external elements 20 mins 20 mins I E 4. Reduce the internal elements, adjustm