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Lear Supplier Development 5 S and Visual Management Implementation Lear Supplier Development 5 S and Visual Management Implementation

Introduction • Lear Supplier Development – Develop a relationship for flawless launch – My Introduction • Lear Supplier Development – Develop a relationship for flawless launch – My experience with 5 S • Sourced Program Suppliers – New to Lear – 5 S implementation at your facility – Familiarity with 5 S 2

Why is 5 S important to Lear? • Commitment within Lear’s own plants • Why is 5 S important to Lear? • Commitment within Lear’s own plants • Role out to supplier base • Another efficiency “tool” in the tool box – Open the lead to eliminating additional waste – Relatively easy to implement • Limited Lear resources • Commitment to developing “World Class” Suppliers 3

Overview of the 5 S System • Abbreviated Japanese words – – – Seiri Overview of the 5 S System • Abbreviated Japanese words – – – Seiri Seiton Seison Seiketsu Shituke • Philosophy or system that focuses on – Effectively organizing the work place – Standardizing work procedures – Eliminating waste 4

Poor Workplace Organization Means Waste • Unneeded inventory incurs extra inventoryrelated expenses • Extra Poor Workplace Organization Means Waste • Unneeded inventory incurs extra inventoryrelated expenses • Extra manpower is needed to manage the growing inventory • Greater amounts of stocked items become obsolete due to design changes, limited shelf life, etc. 5

Poor Workplace Organization Means Waste • Quality defects result from unneeded inprocess inventory and Poor Workplace Organization Means Waste • Quality defects result from unneeded inprocess inventory and machine breakdowns • Unneeded equipment poses a daily obstacle to production activities • The presence of unneeded items makes designing factory/office layouts more difficult 6

Major Benefits of 5 S • Tangible measurables – – – Case study examples Major Benefits of 5 S • Tangible measurables – – – Case study examples Reduces downtime Improves efficiency and productivity Improves delivery times and assists in reducing costs Improves safety / Reduces accidents 7

Major Benefits of 5 S • Intangible measurables – Enhances operational control of processes Major Benefits of 5 S • Intangible measurables – Enhances operational control of processes – Improves product quality – Creates a positive work environment – First impressions • Customers • Employees “You never get a second chance to create a first impression. ” 8

First Impression: Plant Main Aisle 9 First Impression: Plant Main Aisle 9

First Impression: Associate’s Workstation 10 First Impression: Associate’s Workstation 10

Visual Management System – Create an environment in which anyone can walk into a Visual Management System – Create an environment in which anyone can walk into a workplace and visually know the current situation • Visually understand: – – workplace organization the work process when there is an abnormality ahead/behind/ on schedule • Without opening a book • Without opening a drawer • Without talking to anyone 11

Visual Management: Major Benefits • Controls inventory levels • Controls lot sizes • Reduces Visual Management: Major Benefits • Controls inventory levels • Controls lot sizes • Reduces space by better organization / utilization • Reduces energy (manual or mechanical) • Promotes quality 13

5 S Workplace Organization The Foundation of the Visual Workplace • Sort - Eliminate 5 S Workplace Organization The Foundation of the Visual Workplace • Sort - Eliminate what is not needed • Straighten - A place for everything and everything in its place • Shine - Cleaning and looking for ways to keep it clean • Standardize - Maintain and monitor the first 3 S’s • Sustain- Stick to the rules 14

DIVIDE ITEMS INTO TWO CATEGORIES: RED TAG STRATEGY RED TAG Category 1. Raw material DIVIDE ITEMS INTO TWO CATEGORIES: RED TAG STRATEGY RED TAG Category 1. Raw material 2. In-process stock 3. Semi-finished goods 4. Finished goods 5. Equipment 6. Dies and jigs 7. Tools and supplies 8. Measuring devices 9. Documents 10. Other Item name and number Quantity Reason Disposal by: Disposal method: Posting date: Units $ Value 1. Not needed 6. Other 2. Defective 3. Not needed soon 4. Scrap material 5. Use unknown Department/Business Unit/Product Center 1. Discard 2. Return 3. Move to red-tag storage site 4. Move to separate storage site 5. Other Disposal date: Disposal complete (signature ) ATTACH TO ALL UNNECESSARY ITEMS SORT CATEGORIZE NECESSARY ITEMS: * RARELY USED * OCCASIONALLY USED * FREQUENTLY USED NECESSARY UNNECESSARY DISCARD UNNECESSARY ITEMS

IDENTIFICATION LINES DETERMINE LOCATION FOR NEEDED ITEMS CUTTER INSERTS 124 GF 2 HJF 12 IDENTIFICATION LINES DETERMINE LOCATION FOR NEEDED ITEMS CUTTER INSERTS 124 GF 2 HJF 12 HJF 12 HJF 12 HJF 12 HJF STRAIGHTEN VISUAL LOCATIONS PW 2000 FIXTURES 2 A 4397 3 A 9674 2 B 4659 POINT OF USE STORAGE

BUILD PRIDE IN WORK AREAS SHINE ELIMINATE DIRT SWEEP BUILD VALUE IN EQUIPMENT CLEANING BUILD PRIDE IN WORK AREAS SHINE ELIMINATE DIRT SWEEP BUILD VALUE IN EQUIPMENT CLEANING AS A FORM OF INSPECTION CLEAN 17

PREVENTIVE: ASSIGN “ 3 S” RESPONSIBILITIES • SORTING • STRAIGHTENING • CLEANLINESS NAME M PREVENTIVE: ASSIGN “ 3 S” RESPONSIBILITIES • SORTING • STRAIGHTENING • CLEANLINESS NAME M T W T F S Su Ken Sonya Paul Ross Mell Cathy Jesse Roger Ken D. Douglas ASK WHY STANDARDIZE A State CHECK ON “ 3 S” MAINTENANCE LEVEL INTEGRATE “ 3 S” DUTIES INTO REGULAR WORK DUTIES 5 Minute 5 S 5 Point Checklist 1. xxxxxxxxxxxxxxcx lsdfj sdlk dkdie ldslj sdlj f lsdflj sldkj f 2 3. 4. 5. x x xxxxxxxxx xxxx x xxxxxlsdf lsdkjei lsdkj sdl ldf xx xxxxxxxsdlfkj sdflkj sflkjsdflkj flk xxxxx x x xxxxxsdf, j sdlfjk flsdf ljsd 2 3 2 1 4 2. 4 3 3 2 3 4 3. 0 7: 30 - 7: 35 1 S organize 2 S orderliness 3 S cleanliness 4 S standardize 5 S discipline xxxxxxx xxx x xxx x x xxxxxxxxxxx

MANAGERS COMMITTED TO 5 S PROPER TRAINING 5 S asdfsdfs sdf dsfsdfsdfsfdsdfsdf SUSTAIN CORRECT MANAGERS COMMITTED TO 5 S PROPER TRAINING 5 S asdfsdfs sdf dsfsdfsdfsfdsdfsdf SUSTAIN CORRECT PROCEDURES BECOME A HABIT “BUY-IN” FROM ALL WORKERS 19

Visual Controls vs. Visual Displays Visual Display Visual Control • Displays history • Provides Visual Controls vs. Visual Displays Visual Display Visual Control • Displays history • Provides current, up to date information • Gives people information management wants them to know • Gives people information they need to know to be successful • Displays status • Displays abnormalities to anyone clearly • Drives improvement • Drives maintaining the status quo • Can alert, prevent, and provide fail-safe processes • Can be interesting to look at 20

Visual Controls Examples Operator Process Control (OPC) Board Examples 21 Visual Controls Examples Operator Process Control (OPC) Board Examples 21

Implementation Key Points • • Publicly announce the start of the program Obtain top Implementation Key Points • • Publicly announce the start of the program Obtain top level support in the organization Involve all levels of employees Assign a champion(s) to lead 5 S team – Not only quality 22

Implementation Key Points • Standardize formats, design and theme of visuals • Disseminate information Implementation Key Points • Standardize formats, design and theme of visuals • Disseminate information on progress • Photograph or video tape current look • Include in current process – i. e. , work order system, p. m. system 23