LEAN MANUFACTURING IMPLEMENTATION AND PROGRESS MEASUREMENT
The purpose of the paper is creating a model illustrating successful Lean implementation based on prior analysis of Lean implementation progress measurement and the main barriers identification.
In the presented model these implementation activities should lead to improvement in five dimensions: elimination of waste; continuous improvement; continuous flow and pull-driven systems; multifunctional teams and information systems.
1. Waste is everything that does not add value to the product, like inventories, machine setups, machine downtime, movement of parts and scrap.
2. Continuous improvement: It represents the conviction that improvement efforts are never finished, and it is the consistency to keep the discipline for improvement in place.
3. Continuous flow and Pull-driven systems: It is the ability to abandon the batch mentality and adjust the processes to accept smoother movement of products through the line, which are going to be triggered by the pull of the customer of each process.
4. Multifunctional teams: In Lean implementations, teams have more responsibility and autonomy, so improvement and problem-solving can happen closer to the source. Also, to make flexibility in the line feasible, it is necessary to have a multi-skilled workforce.
5. Information systems: The reduction of vertical levels in the structure, and the autonomous operation that teams have to reach, makes necessary that employees have timely access to better information to enable problem solving and decision making. It does not necessarily mean, but it certainly does not exclude, computerized information systems.
Progress dimensions Metrics and Indicators
Elimination of waste
Work in process (WIP): Value of WIP in the line.
Setup time: Time spent in setups/ total productive time (percentage).
Machine downtime: Hours-machine lost due to malfunction/Total machine hours scheduled (percentage).
Transportation: Number of parts (trips) transported and distance.
Space Utilization: How much area does the line need, including its WIP and tools.
Continuous improvement
Number of suggestions per employee per year.
Percentage of suggestions that get implemented.
Scrap: % of the products that need to be scrapped.
Rework: % of the units that need to be sent to rework.
Continuous flow and Pull-driven systems
Lot sizes: Average lot size for each product.
Order flow time: Time an order spends being processed in the shop floor.
Order lead time: Average time from the placement of an order (by a customer) to its delivery.
Pulling Processes: Percentage of the line processes that pull their inputs from their predecessors.
Pull Value: % of the total annual value or throughput of the system that is scheduled through pull mechanisms.
Multifunctional teams
Autonomous control: % of quality inspection carried out by the team.
Work team Task Content: % of the tasks required to make the product performed by the team.
Cross training: Average over team members of Number of skills a team member possesses/Number of skills needed in a team.
Number of employees capable of assignment rotation.
Information systems
Frequency with which information is given to employees.
Percentage of procedures that are documented in the company.
Frequency with which the line or cell progress boards are updated.