Avtech Operations Continuous

Improvement Activities

Welcome UW IE Students!
November 6, 2002
 Lean Manufacturing Motivation
Per the Avtech 2002 Business Plan:
Improve product quality, schedule
performance, and cost through continuous
improvement... by better utilizing planning,
process flow methods, and systems
 Lean Manufacturing Motivation
Lean manufacturing changes the focal point
from the process to flow of value (value
stream).

Value Stream - all the actions (both value

added and non-value added) currently
required to bring a product from raw
material into the hands of the customer.
 Lean Manufacturing Motivation
Value Stream Improvement - focuses on
material and information.

Process-Level Improvement - focuses on

people and process flow and eliminating
waste at the shop floor team level.
 Lean Manufacturing Motivation
One of the big advantages of creating flow
teams is that it causes us to take a long, hard
look at the processes and make
improvements by reducing waste.
 Lean Manufacturing Motivation
Results:
Lead times are reduced
Flexibility increases and we can build the right
product at the right time
WIP on the manufacturing floor is reduced
Space requirements are reduced
 Lean Manufacturing Motivation
Results (cont):
Quality is improved by reducing process
variation and quality problems are eliminated
before they grow
Overproduction is reduced and, eventually,
even eliminated (producing more, sooner, faster
than is required by the next process)
 Lean Manufacturing
Implementation Steps
Creating continuous flow teams involves
four steps:
Define the product family
Evaluate the current state
Develop the future state
Implement
 Define the Product Family
A product family is defined as a group of
products that pass through similar
processing steps and over common
equipment in our downstream processes.
Similar assembly procedures
Similar testing procedures
Similar work content
Similar material
 Define the Product Family
Demand Profile requirements
Predictable
Relatively stable rate
Volume high enough to sustain a work team
 Evaluate the Current State
Complete detailed time studies of each
element of each process step for the product
family.
Complete detailed study of process flow for
the product.
Note non-value added activities and waste
streams.
 Evaluate the Current State
Investigate document changes to improve
manufacturing processes.
Investigate process changes to improve
cycle time.
Create baseline metrics.
 Create the Future State
Create a Gantt chart and define the work
team size.
A Gantt chart details the sequential process
flow to assist in balancing the production line
Standardizes work content
 Process Gantt Chart
Person 1 6:00 6:15 6:30 6:45 7:00 7:15 7:30 7:45 8:00 8:15 8:30 8:45 9:00 9:15 9:30 9:45 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 13:30
Complete assy prior
to cal (2) units B
Cal and install select
(5) units B
Group B off to coating

-30 prep one side C

Install cover and final

test A

Group A off to FI

-30 prep work C

Solder -30 comp (3)

Person 2 6:00 6:15 6:30 6:45 7:00 7:15 7:30 7:45 8:00 8:15 8:30 8:45 9:00 9:15 9:30 9:45 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 13:30
Complete assy prior
to cal (3) units B

Assemble less cover

group A A
Group A off to inspect

Make diode assys C

Touch up -50 C
Complete -50 assy C

solder -30 comp (2)

crimp conn wires

 Create the Future State
Change drawings, processes, etc. as needed
to support the Gantt chart.
Create the POU warehouse.
Define common and unique parts
Determine kanban sizing
Coordinate intent to go POU with stores
 Create the Future State
Evaluate resources needed to support the
future state.
Test equipment
Shared resources
Physical location
Available labor
Evaluate the future state for improvement in
metrics.
 Implement
Change all necessary drawing, procedures,
routers, etc.
Train new team members to the Gantt.
Physically set-up the work team.
Set up the warehouse in MMC and in the
work area.
 Implement
Start priming the system.
Kick-off new team.
Monitor progress continually.
Lean Manufacturing Benefits
 Cycle Time Reduction
The benefits of reduced cycle time include:
reduced lead time
improved ability to meet customer demand
changes
ease of management
less dependence on forecasts
less inventory required for same throughput
 work order cycle time (days)
01
/1
1

0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
02 /20
/0 01
5
02 /20
/0 01
5
02 /20
/0 01
7
03 /20
/0 01
2
04 /20
/0 01
9
05 /20
/0 01
4
05 /20
/1 01
7
05 /20
/2 01
3
06 /20
/1 01
5
06 /20
/2 01
7
07 /20
/2 01
3
07 /20
/2 01
7
08 /20
/2 01

Series1
0
08 /20
/2 01
8
09 /20
/2 01
5
10 /20
/0 01
9
10 /20
/1 01

work order #
8
11 /20
/0 01
9
11 /20
/1 01
9
Team H Work Order Cycle Time

11 /20
/2 01
7
01 /20

4 per. Mov. Avg. (Series1)

/2 01
2
02 /20
/0 02
5
02 /20
/2 02
1
02 /20
/2 02
Team H Cycle Time

7
03 /20
/1 02
1
03 /20
/2 02
6/
20
0
4/ 2
30
/0
4/ 2
19
/0
2
 w ork order cycle time (days)
54
83
-

0
5
10
15
20
25
30
35
40
52 1-8
83
-
54 1-1
83
-
54 1-8
83
-
54 1-7
83
-
54 1-7
83
-1
-
54 8
83
-
54 1
83
54 -1
83
-
54 1-8
83
-
52 1-7
83
-
54 1-6

Series1
83
-
54 1-7
83
-1
-
54 7
83
-
55 1
83
52 -1
83
-1
-
54 6
83

part number
54 -1
83
-
54 1-7

15 per. Mov. Avg. (Series1)

83
-
55 1-8
83
-
Team Y 6 Month Work Order Cycle Time

55 1-2
83
-
54 1-2
83
-
54 1-8
83
-1
-
55 7
83
54 -1
83
-
54 1-8
Team Y Cycle Time

83
-1
-
55 8
83
54 -1
83
-1
-
55 7
83
-
55 1
83
-1
 work order cycle time (days)

0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
7E+05
7E+05
7E+05
7E+05
7E+05
7E+05

7E+05
7E+05
7E+05
7E+05
7E+05
7E+05
7E+05

Series1
7E+05
7E+05
7E+05
7E+05

work order #
7E+05
7E+05
7E+05
Team D Work Order Cycle Time

7E+05
7E+05

5 per. Mov. Avg. (Series1)

7E+05
7E+05
7E+05
7E+05
Team D Cycle Time

7E+05

7E+05
7E+05
7E+05
7E+05
7E+05
 Cycle Time Reduction
Average cumulative cycle time reduction
across teams D, H, and Y is
116 days
 WIP Turns and WIP $
The benefits of increased WIP turns and
decreased WIP $s include:
Lower inventory levels (as upstream inventory levels
are decreased in conjunction with the reduction)
Less capital tied up in inventory (as upstream
inventory levels are decreased in conjunction with
the reduction)
Converts inventory into revenue more quickly
Quality issues or Engineering changes easier to
manage
Less dependence on forecast
 WIP turns
Ju
n-
9

0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
No 6
v-
9
A 6
pr
-9
Se 7
p-
9
Fe 7
b-
98
Ju
l-9
De 8
c-
9
M 8
ay
-9
O 9
ct
-9
M 9
ar
-0
A 0
ug

date
-0
Ja 0
n-
0
Ju 1
n-
0
Avtech Aggregate WIP Turns

No 1
v-
0
A 1
pr
-0
Se 2
p-
0
Fe 2
b-
Aggregate WIP Turns

03
Ju
l-0
De 3
c-
03
Improved workplace organization
The benefits of better workplace
organization include:
Forces the question do we really need this?
Ease of movement of cells
PCs on bench allow for easy access to
documentation and reduce workstation clutter
Efficient use of manufacturing floor space
 Improved Workplace Organization

Old, cluttered, disorganized inventory storage

system in REU
Improved Workplace Organization
 Reduced Footprint
Fumex
400 HZ
power
Fumex

REU Test Storage Shelf

Supply Cabinet

REU Set-up Table

TS 2000-1-1
Team D Assembler Bench Team D Assembler Bench
REU Test

New REU
Tester
REU Test Equipment Bench E-server Tech Bench

Tech Bench
REU Test PC
REU Test PC
Network Cart
Drop
Oven
Bench

Network
Test

Drop

Tech Bench
Oven
REU

TS 2000-1
REU Test
Team I: Team D: DC Dimmers

Tester
Network
Drop
Windshield
Supply Cabinet
Team V
Network

REU Test PC
Trolley
Drop
Supply Cabinet
Fumex
Temp.

Team D PCB Storage Rack

Double Bay Stock
REU Test REU Test PC
Network
Team D & I
Cart Drop
Drop
REU Test Tech
TS 5700-1 Equipment Bench

File Cabinet

Network
Drop Controllers

Assembler Bench
TS 2000-1-1
REU Test
Tester
Selcal Tech Bench

RE
U
Supply Cabinet

REU Test PC
REU Test

REU Test PC

Team V: Team R: REU

Cart
PCB Storage Rack

Selcal Test Network

Drop
Inspection
Team V Double Bay

REU Test PC
Cart
Trolley

REU Test PC Station

Team V Assembler Bench

U
RE

REU Test Tech Bench

Network
REU Test Tech Bench

Drop
U
RE

Inspection Desk
Network TS 5340-1 Tester
PCB Storage Rack

Drop
Network
Drop
Trolley
Team V Double Bay Intermec
Terminal Inspection Queue Rack
Burn-in Shelf
Cabinet
File
Cabinet
File

REU Inventory
Team Y: Double Bay
Stock Trolley Stock Trolley
Team H: Double Bay
Team Y: PCB Storage Rack

Stock Trolley
Stock Trolley
Team Y: Double Bay Team Y: Double Bay
Stock Trolley Team Y: Double Bay Team ?: PCB Storage Rack

Network

Team Y: Handset & Cradle Team C: ACP1 (5145)

Drop

Team R: REU Assembly Team H: Honeywell RCH

Team H: PCB Storage Rack

Network
Network
Drop
Drop

U
RE RE REU

H & C Tester

7513 RTIU
U U
R
E

Fumex
U

G
Team R Assembler Bench Team R Assembler Bench Team R Assembler Bench Team R Assembler Bench Team Y: Tech Bench Team Y: Assembler Bench Team H: Assembly Bench
Team ?: Tech Bench Team ?: Assembler Bench Team ?: Assembler Bench
Team H: Tech Bench Fumex

Fumex
Fumex
Fumex Team ?: Assembler Bench Team ?: Assembler Bench Team ?: Tech Bench
Network
ACP1 Assembly Bench

ACP1 Assembly Bench

Drop
Team : Double Bay

400 Hz
AC

Stock Trolley
ACP1

1 P

Network
Drop

Team T: ACP3 (5361)

ACP1 Assembly Bench

ACP1 Assembly Bench

AC
P1

AC
P1

390 square feet for future production Team ?: PCB Storage Rack Team Y: Double Bay
Stock Trolley
Fumex
Drop
Team : Double Bay

Network
Stock Trolley

Drop
Solder Pot Table

ACP1 Assembly Bench

ACP1 Assembly Bench

Air Drop
400 Hz
ACP1

1
P
C
A

Team U: ACP4 (5701)

50

ACP1 Storage Shelf

Team : Double Bay
Stock Trolley

P1
AC

AC
429 Simulator
P1
Inspection Desk
ACP1 Tech Bench
Steve

429 Simulator
File
ACP1 Storage Cabinet ACP1 Storage Cabinet ACP1 Storage Cabinet Cabinet ACP1 Storage Shelf ACP1 Storage Cabinet

File
ACP1 Storage Cabinet Cabinet
 Improved Workplace Organization
Cumulative effect of re-organizations
460ft2 of free manufacturing space
Unoccupied work cells available for new teams
Eliminated a number of unnecessary pieces of
equipment
 POU Inventory Management
Benefits include:
Shorter cycle time
Reduction in overall product labor content
Ownership of inventory
Mobility
Skill-set proliferation
Better workplace organization
Reduction of non-value-added activity
 POU Inventory Management
Reduced Stores storage
by 4.43 shelves.

Reduced non-value
added kitting labor by
807 hours per year or
$4,462 per year.
 POU Inventory Management
Cumulative reduction of labor content
across the products manufactured by teams
D, H, and Y is
Headcount reduction of 2.6 people
Labor content reduction of $64, 896
 Operator Enrichment
Team members learn a broader set of skills
Warehouse management
Inspection certification
Test stamp certification
Increased accountability for team
performance
CRSO returns
Improved TAT
Closed feedback loop on product quality
 Operator Enrichment
Self-manage
Warehouse accuracy
Work order release
Increased cross-training
Source inspection
Self-verification
Assembler - Tester Model
Modified application for batch teams
 Future Applications
Shared resource kanban
Supplier kanbans
Cross-training of team members and regular
rotation
Manufacturing Flow Documents (MFDs)
 Future Applications
5S programs
Incorporating more shared resource
processes into the small teams
EOQ application where appropriate
Value stream mapping and mixed model
continuous flow
 Future Applications
POU implementation into shared resources
Eliminate dedicated inspectors by
incorporating them into the assembly
processes
Working with customers to increase the
frequency of deliveries