Lean Manufacturing Concepts
Applied to Logging Businesses
Brian K. Brashaw
University of Minnesota Duluth
Natural Resources Research Institute
John McCoy
Edge Forestry
2007 Logger Conference
Overview
High Performance Enterprise
The Competition is Fierce
Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will
starve to death.
It doesn’t matter whether you are a lion or a gazelle, when the sun comes up, you had better be running.
Presentation Overview
Overview of lean manufacturing
8 Wastes
Lean tools
Examples of lean wood products companies
Natural Resources Research Institute
University of Minnesota Duluth
NRRI Mission
“To enhance near-term economic development of
Minnesota’s natural resources in an environmentally
responsible manner.”
Forestry/Forest Products works with 150+ companies and
cooperators/year in Minnesota, Wisconsin, the Great Lakes
Wood Industry Sectors Served by NRRI
Primary
Lumber, OSB and composites, Paper residues, Pulp
Secondary
Cabinetry
Millwork and Fenestration (windows)
Recreation Products
Wood Flooring
Wood Finishing
Furniture (residential and office)
Store fixtures
Housing
Key Industry Issues in the
Midwest
300,000+ employed in MN, WI, MI, IA 100,000 in primary (logging, lumber, paper and composites) 200,000 in secondary (fenestration, millwork, cabinetry, flooring,furniture, and store fixtures among others)
Key Industry Issues
Slow implementation of new technology and best manufacturing practicesKey Industry Issues
Imported
products/overseas manufacturing
Key Industry Issues
Reduction in resource
availability
High fuel costs
High stumpage costs
Forest ownership
changes
Significant
equipment/technology investments
How can we improve?
NO
TOC
Six Sigma
TPS
Agile
TQM
Lean Manufacturing
To help companies understand
and implement lean . . .
Our efforts have focused on:
Building capacity using wood specialists
Customized wood industry manufacturing simulations
Training in lean principles and transformations
Tours of best practices
Facilitating initial project teams
Kaizen blitzes
Multiweek events
Lean Manufacturing
Introduction to Lean Building Blocks
Horner Flooring Company
Team “Panel Pushers” May 18, 2004
What is Lean Manufacturing and
Continuous Improvement?
Lean Is
--- A business system for organizing and managing
product development, operations, suppliers, and customer relations using systematic change and continuous improvement.
4 P’s
Develop long-term thinking and clear philosophy.
The right process will produce the right results.
Add value to your organization by developing your
people and partners.
Lean
By accomplishing these activities we see more employee involvement
The ultimate Goal Æ increased profit and
The Work
Understand your value stream.
Develop “eyes for waste” and remove it.
Create process stability and flow.
Standardize work and use visual controls.
Change your culture by developing your people and partners.
Become a learning organization through relentless reflection and continuous
Competitiveness = Time
“One of the most noteworthy
accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycles. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.”
Historic Ford Sawmill, Alberta,
Michigan
Competitiveness = Waste
TPS is a management system in which the people are fully expected to fully utilize the facilities and machines to satisfy customer requirements while working towards
absolute elimination of waste.
Taiichi Ohno
What is Value-Added?
Anything that someone is willing to give up or use
What is Waste (Non-Value)?
Anything that
consumes
resources without returning any value
Many of these
wastes might still be considered necessary Time In Manufacturing 5% 95% Value Added Non Value Added
Wood Education and Resource Center --- Princeton, WV 8-10 August, 2005 Daily
Stacking Drying Planing Shipping
Weekly Customer Production Control Weekly Orders Pricing Report Timber Sale Inquiry Invoice Weekly Schedule C/T=6m C/T=3m F/T=15d C/T=2m 5 days 6 min .5 days 3 min 22 days 15 days 15 days 2 min 15 days VA = 15 d LT = 57.5 d I 35 MBF I 1.5 MMBF I 1 MMBF I 1 MMBF 1.36 MMBF monthly I 374 MBF Sawmilling
The Seven Deadly Wastes + 1
9 Defects
9 Overproduction
9 Waiting
9 Not using the talents of our people 9 Transportation
9 Inventory
9 Motion
Waste of Making and
Correcting Defects
Money and time wasted to find and fix mistakes/defects
Waste of Overproduction
Making products Faster than needed!
Making products Sooner than needed!
Waste of Waiting
Time lost when people, material or machines are waiting . . . .
Waste of not using the talents
of our People
Considered by many to be the greatest waste . . the wasted potential for improvement that results when the people doing the work are not asked for their ideas on improving the manufacturing process.
Waste of Transportation
Transporting parts and materials around the plant
Waste of Inventory
Material in excess of the one-piece required for production
Waste of Motion
Any movement of people or machines that does not add value to the product.
Waste of Extra Processing
Activities that add no value to the product or service from the customer’s point of view
Visual example of a Lean Office
Value Stream Walk-through
Current Process
Purchase
Order
Work
Order
End of Process
44 Process Steps
5 People Involved
8 Waits
1897’ of Travel
End of Process
10 Process Steps
1 Person Involved
0 Waits
0’ of Travel
26 Minutes to Complete
Lean Building Blocks
Mapping Stream Value 5S Cellular/Flow Pull/Kanban Changeover Reduction Teams Supermarkets Quality Batch ReductionStandard Work Plant Layout Visual Control
Continuous Improvement
Scrounge
Steal
Stash
Scramble
Search
5 “S” – The 5 Pillars of the
Visual Workplace
Sort – Clear out rarely used
items
Straighten – Organize and
label a place for everything
Shine – Clean it
Standardize – Create
procedures to maintain the first 3S’s
Mill Work
Benchs
Standard Work
Operations safely carried out with all
tasks organized in the best known
sequence, using the most effective
combination of:
9People
9Materials
9Methods
PPE:
9/5/2006 Tools: Manager: Supervisor: Date: Date:
Auto Manual Wait Walk
Safety Poka Yoke In-Progress Stock
Use shadow markers to determine the board's width. Change the controls to accommodate the size.
5 s
Keep hands and loose clothing clear of log while it enters the Bull Edger. Feed into machine
5
10 s 5 s 1 Receive logs.
Check both sides of the log before running through the bull edger. If the log does not meet length or yield specs discard it in the slab chain. Inspect logs.
2
Take the logs from the Scragg and inspect the trimmed off sides. All waste and trim should go in the slab chain.
Key
Quality
Time Totals 0 25 s 0 0
7 Clean machine.
Periodically throughout the day and at each shift change clean the bull edger and the area surrounding it, especially the floor. This helps prevent accidents. Sharpen the bull edger blades as needed or during downtimes as a preventative maintenance tool. Refer to the standardize procedure sheet for sharpening instructions.
Sharpen blade. 6
5 s
4
3 Move to feeder Move log to bull edger feeder and line up on green line.
Determine size.
Work Elements Key Points
Safety, Quality, Technique, Cost
Time Elements
Breakdown
Work Area Layout Company: Cass Forest
Products
Document #: Safety glasses, Steel toe boots
Date: Approved
By:
Standardized Worksheet Bull Edger Page 1 of 1
No.
This row of buttons determines the log widths.
Log feeds into here.
Shadow marker.
Plant Layout to create Flow
G L U E B O O T H R u c k l e s G u i l l o t i n e Sc ra p Cl ip pe r SC IS S O R LI F T T abl e Ta b le C H A L L E N G E G U IL L O T IN E LO N G DE IL SP L IC E R He ad C lippe r Ta b le Ta b le V e n e e r In s p e c t i o n SC IS SO R LI F T S i n k K N I F E G R I N D E R S t o r a g e C o n v e y o r V e n e e r S t r i p s R i p S a w B a n d S a w D E I L S P L I C E R Ru c k le s J o in te r F I N I S H C L I P P E R H O G S C R A P C O N V E Y O R S U P V O F F I C E D E I L S P L I C E R CH A L L E N G E GU IL L O T IN E V e n e e r I n s p e c t i o n V e n e e r In s p e c t i o n S t o r a g e C o n v e y o r V e n e e r S t r i p s Visual control --- Like shelves in a
supermarket, stock is replenished based on demand (customers go there to “shop”)
Communication between links in value stream
w/o a written production schedule
Changeover Reduction
Definition: The time between the last good piece off
the current run and the first good piece off the next run
Before Shigeo Shingo’s “Single Minute Exchange of
Die” (SMED), typical setup tasks and time breakdowns:
5% 15%
30% 50%
Preparation, after process adjustment, checking and moving materials, parts and tools
Removing and mounting of parts and tools
Machine measurements, settings, calibrations
Total Productive
Maintenance
A total quality management strategy focusing on improving equipment effectiveness and reliability. It is upper level directed and bottom driven. Reduce maintenance costs
Eliminate equipment
downtime
Increase productivity
Achieve a clean and safe
workplace
Provide proper training Establish open
communication
Promote operator ownership
of equipment
Measure maintenance
performance
Sustain the improvements
Sounds good…but how is
this relevant for logging?
Continuous Improvement
A philosophy and a process in all
organizational operations practiced by all employees.
A creative methodology to increase the quality and value delivered to customers.
A common sense, low cost approach to improvement.
Three Improvement Systems
TIME I M P R O V E M E N TCo. B - Innovation Only Co. C - Innovation,
Standards, CI
Every Problem is an Improvement
Opportunity!
Few large issues Few medium issues Many small issuesTypical companies
Few large issues Few medium issues Many small issuesTrue lean improvements
Few large issues Few medium issues Many small issuesThe Work
Understand your value stream.
Develop “eyes for waste” and remove it.
Create process stability and flow.
Standardize work and use visual controls.
Change your culture by developing your people and partners.
Become a learning organization through relentless reflection and continuous
Wood Education and Resource Center --- Princeton, WV 8-10 August, 2005
Delimb Skid Slasher Loading
Daily Customer Production Control Orders Timber Sale Purchase Weekly Schedule C/T= C/T= C/T= VA = d LT = d I I I I Cords/week Feller - B C/T=
Eyes for Waste
Defects / fixing a mistake
Overproduction
Waiting
Not using the talents of your employees
Transportation
Inventory
Motion
Defects / Mistakes
Violating sale requirements (rutting, not leaving species, outside boundary, damage to remaining trees, etc.)
Not understanding quality in a tree or log
Bringing rot into yard
Tree length vs. 100” (decay is hidden)
Loss of weight/quality during summer
Logs dragged through dirt
Out of spec logs
Multiple handling damages logs
Log split, shear potentially
Butt swell causes tree to be cut higher
Chipper Frass
Chips Logging Debris
Timber sale losses
Lump sum sale volume to weight payment conversion loss
Customer receives lower value & increased process cost
Equal volumes of Spruce
Sound spruce above
Red rot spruce below =
50% weight of sound spruce
Timber sale losses
Lump sum sale volume to weight payment conversion loss
Customer receives lower value & increased process cost
Sound Aspen above
Aspen with beginning &
advanced decay (not dry rot)
Rot in aspen usually retains water – aspen weight was 73% of sound aspen weight
Factoring in dry rot & holes would likely increase wt loss to 30%
Overproduction
Winter logging 70+%
Time limits – contract language
Inventory volume is a target. Usually more wood than expected.
Weather and road restrictions
Mills over contract to ensure wood supply
Speculation
Waiting
Waiting for information from the owner, forester, county,
buyer.
Unbalanced production flow between feller-buncher, stroke
delimber, skidders and slashers
Logs at landings waiting for pickup and delivery
Trucks waiting in wood to load
Trucks waiting at mill to unload
Wait for equipment, parts, maintenance, service truck
Road clearing, layout of road
Transport to next job.
Snow removal
People Talents (Unused employee
creativity)
How well do we communicate between crews?
Lack of standardized work
Don’t track downtime
Lack of operator driven maintenance
Additional training opportunities
Benchmarking
Best practices, maintenance, simulation, techniques
Metrics productivity measurements
Current training
Transportation or conveyance
Equipment is not taking an efficient entry rout or travel routs
Movement around site, skidding
Empty trucks lack of backhaul
Trucks crossing taking wood to market
Motion or unnecessary movement
Multiple loading/unloading
Piles falling over
Picking up/setting down in conventional
In/out of equipment for maintenance
Looking for equipment, paperwork, etc.
Organization of maintenance van, home, base,
shops
Missed wood, visuals lacking
Sort in woods vs. sort at landing
Fellerbunchers, delimbers or slashers sort?
Transportation, motion
Left: Dozer clears path around sale boundary for feller-buncher
People talents, motion
CTL processor GPS tract – 2 days.
Operator efficiency can be increased with low cost, user friendly GPS technology coupled with basic operational planning.
Sample of data available from GPS track log
**1221 feet total distance covered in one hour
3/12/07 Feller-Buncher movements in Feet per Minute - From 10am to 11am
0:00:00 0:00:43 0:01:26 0:02:10 0:02:53 0:03:36 1 Distance (ft) Time (Min:sec) 38 ft 15 ft 17 ft 66 ft 36 ft 16 ft 14 ft 48 ft 18 ft 11 ft 33 ft 16 ft 8 ft
Excess Inventory
Winter logging creates large inventories
Shutdowns by customers
Road restrictions
Standing inventory of purchased wood not logged
Tops/ limbs/ biomass
Cut but not hauled, landings, concentration yards
CTL cut but not forwarded, and delivered
Extra or Inappropriate Processing
BMP’s – regulatory
Cutting to 100” vs. tree length
Loses ?%
Road building vs. skidding
Bidding chase
Open bid vs. sealed bid
Fixed length cutting
Lean Building Blocks
Mapping Stream Value 5S Cellular/Flow Pull/Kanban Changeover Reduction Teams Supermarkets Quality Batch ReductionStandard Work Plant Layout Visual Control
Continuous Improvement
Changing the culture . . Lean
is not Mean!
The Challenge
“Change is never easy… particularly when things are going well”
“By re-inventing ourselves...and our
companies...regularly...we will better serve our customers...prosper...and preserve our planet for future generations.”
Fujio Cho President
Lean Manufacturing for the Wood Products Industry
Bayport Public Library --- Bayport, MN 11-13 December, 2006
C
itizens
A
gainst
E
verything
V
irtually
Assistance is Everywhere
www.lean.org
Local lean manufacturing extension partnerships
Talk to industry adopters
Buy a book and get started
Attend a short course
Lean Implementation – How to
Do It?
Find a change agent. This could be you—or anyone of the organization: the key is that
this must be a leader who will take personal responsibility for the lean transformation.
Get the lean knowledge. It’s important to draw from a true and thorough source of lean,
whether from an ex-Toyota sensei or some other reputable source, so your internal change agents master lean thinking to the point where it becomes second nature. And always implement lean techniques as part of a system, not as isolated programs.
Find or create a crisis. Unfortunately, few if any firms will take the necessary steps to
adopt lean thinking across the board unless they are facing a crisis.
Forget grand strategy for the moment. Start by simply eliminating waste everywhere
possible.
Map the value streams, beginning with the current state of how material and information
flow now, then drawing a leaner future state of how they should flow and creating an
implementation plan with timetable. (For the best resource teaching you how to do this, try
Learning to See).
Begin as soon as possible with an important and visible activity.
Demand immediate results.
As soon as you’ve got momentum, expand your scope. Link improvements in the value
streams and move beyond the shop floor to office processes. Practice kaizen, or constant improvement, relentlessly!
#2 – Create/Implement the Plan
Training for ownership and management
Lean manufacturing
Continuous Improvement
Create the training plan
Document expectations of employees
Establish criteria for lean project selections
Define the structure for task teams
Create a team and get a project completed.
Building the Capacity of Minnesota’s Wood Products Industry
Kaizen Blitz (3-5 days)
Produce Improve Implement Observe, Organize, & Define Train
Building the Capacity of Minnesota’s Wood Products Industry
Multi-week blitzes
Step 1 - Company selects a project
Can be completed in 8 weeks
Must be measurable with significant impact
Boundaries established
Step 2 - Meeting of team participants
Create team charter
Lean training
– Continuous improvement – Lean manufacturing tools
– Value stream mapping
– Pull inventory replenishment systems – Setup reduction
Building the Capacity of Minnesota’s Wood Products Industry
Multi-week blitzes
Step 3 - Team meetings
Facilitate weekly team meetings
Monitor team progress
Assure support
Provide assistance - training, advice
Step 4 - Meeting of all team participants plus
company top management
Team presentations to the group
Full team participation
Use visuals - Powerpoint presentation, video, digital
photos, etc.
Lean Outcomes
Reduced work in progress
25-90%
Decreased lead times
25-90%
Increased floor space
10-80% Workforce development Increased sales Cost reductions Improved quality 5-80%
Improved worker motivation and productivity
25-70%
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Ongoing Activities
Our team is continuing to work with new companies and is cooperating with our outstanding Manufacturing Extension Programs in
Wisconsin, Minnesota, Michigan and Iowa by providing wood industry specific lean training and implementation assistance.