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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

(2)

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.

(3)

Presentation Overview

„ Overview of lean manufacturing

‰ 8 Wastes

‰ Lean tools

„ Examples of lean wood products companies

(4)

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

(5)

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

(6)

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)

(7)

Key Industry Issues

„ Slow implementation of new technology and best manufacturing practices

(8)

Key Industry Issues

„ Imported

products/overseas manufacturing

(9)

Key Industry Issues

„ Reduction in resource

availability

„ High fuel costs

„ High stumpage costs

„ Forest ownership

changes

„ Significant

equipment/technology investments

(10)

How can we improve?

ƒ

NO

ƒ

TOC

ƒ

Six Sigma

ƒ

TPS

ƒ

Agile

ƒ

TQM

ƒ

Lean Manufacturing

(11)

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

(12)

What is Lean Manufacturing and

Continuous Improvement?

(13)

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.

(14)

Lean

„ By accomplishing these activities we see more employee involvement

„ The ultimate Goal Æ increased profit and

(15)

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

(16)

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.”

(17)

Historic Ford Sawmill, Alberta,

Michigan

(18)

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

(19)

What is Value-Added?

„ Anything that someone is willing to give up or use

(20)

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

(21)

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

(22)

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

(23)

Waste of Making and

Correcting Defects

„ Money and time wasted to find and fix mistakes/defects

(24)
(25)

Waste of Overproduction

„ Making products Faster than needed!

„ Making products Sooner than needed!

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Waste of Waiting

„ Time lost when people, material or machines are waiting . . . .

(29)
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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.

(32)

Waste of Transportation

„ Transporting parts and materials around the plant

(33)
(34)

Waste of Inventory

„ Material in excess of the one-piece required for production

(35)
(36)

Waste of Motion

„ Any movement of people or machines that does not add value to the product.

(37)
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(39)

Waste of Extra Processing

„ Activities that add no value to the product or service from the customer’s point of view

(40)
(41)

Visual example of a Lean Office

Value Stream Walk-through

(42)

Current Process

Purchase

Order

Work

Order

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End of Process

44 Process Steps

5 People Involved

8 Waits

1897’ of Travel

(88)
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End of Process

10 Process Steps

1 Person Involved

0 Waits

0’ of Travel

26 Minutes to Complete

(99)

Lean Building Blocks

Mapping Stream Value 5S Cellular/Flow Pull/Kanban Changeover Reduction Teams Supermarkets Quality Batch Reduction

Standard Work Plant Layout Visual Control

Continuous Improvement

(100)
(101)

„ 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

(102)

Mill Work

Benchs

(103)
(104)

Standard Work

„

Operations safely carried out with all

tasks organized in the best known

sequence, using the most effective

combination of:

9People

9Materials

9Methods

(105)

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.

(106)

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

(107)

„ 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

(108)
(109)

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

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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

(114)
(115)

Sounds good…but how is

this relevant for logging?

(116)

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.

(117)

Three Improvement Systems

TIME I M P R O V E M E N T

Co. B - Innovation Only Co. C - Innovation,

Standards, CI

(118)

Every Problem is an Improvement

Opportunity!

Few large issues Few medium issues Many small issues

(119)

Typical companies

Few large issues Few medium issues Many small issues

(120)

True lean improvements

Few large issues Few medium issues Many small issues

(121)

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

(122)

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=

(123)

Eyes for Waste

ƒ Defects / fixing a mistake

ƒ Overproduction

ƒ Waiting

ƒ Not using the talents of your employees

ƒ Transportation

ƒ Inventory

ƒ Motion

(124)
(125)

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

(126)
(127)

Chipper Frass

Chips Logging Debris

(128)

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

(129)

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%

(130)

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

(131)
(132)

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

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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

(136)

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

(137)

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?

(138)

Transportation, motion

Left: Dozer clears path around sale boundary for feller-buncher

(139)

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.

(140)

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

(141)

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

(142)

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

(143)

Lean Building Blocks

Mapping Stream Value 5S Cellular/Flow Pull/Kanban Changeover Reduction Teams Supermarkets Quality Batch Reduction

Standard Work Plant Layout Visual Control

Continuous Improvement

(144)

Changing the culture . . Lean

is not Mean!

(145)

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

(146)

Lean Manufacturing for the Wood Products Industry

Bayport Public Library --- Bayport, MN 11-13 December, 2006

C

itizens

A

gainst

E

verything

V

irtually

(147)

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

(148)

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!

(149)

#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.

(150)

Building the Capacity of Minnesota’s Wood Products Industry

Kaizen Blitz (3-5 days)

Produce Improve Implement Observe, Organize, & Define Train

(151)

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

(152)

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.

(153)

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%

Ec

onomi

c

Ec

onomi

c

Stab

ility

and

Stab

ility

and

G

ro

w

th

G

ro

w

th

(154)

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.

(155)

Thank you!

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