Lean in mro

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Lean in mro
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SELF Assessment
ITEM NOT KNOWN SOME UNDERSTAND
KNOWLEDGE THE CONCEPT
Poka Yoke
7 Wastes
Kanban
SMED
5S
JIT
VOC
Six Sigma 3
Maurice Pelt, MSc.
• Researcher optimization in MRO
• Lecturer industrial business optimization
• Member examination board Engineering
• Experience
• Production specialist & logistics consultant, TATA (Hoogovens) (1985-1998)
• Senior manager supply chain strategy, Deloitte Consulting (1998-2008)
• Associate partner S&V supply chain consultants (2008-2010)
• Education
• MSc. - Mechanical Engineering, TU Delft (1985)
• Business Administration, SLB (1992)
• CPIM - Supply Chain Management, APICS (2002)
• Research focus: Industrial optimization, and advanced maintenance
methods through condition monitoring and data mining
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the optimization of maintenance
a closer look at process improvement in aircraft maintenance
College Kernthema 7
CONTENTS
This week
•Why optimization of maintenance
• The optimization of processes and various philosophies
• LEAN Fundamentals (what)
• LEAN improvement methodology and tools (how)
Why optimizing maintenance?
Remember, what is important in a line/base maintenance
environment?
• Quick response
• Serviceable aircraft (one without defects)
• Good & frequent updates
• Quick Dispatch
• Knowledgeable decisions
Aircraft Operational
Maintenance Serviceable aircraft
(with defects)
 Small, Medium MRO’s
The problem – unique challenges Small volumes
Unpredictable processes
LEAN implementation at these small Multiple aircraft types (high variety)
MRO organizations is hindered by
Small bargaining power
challenges particular to the small
business in addition to the characteristics Small on-site stock
of MRO work. Variable input / requests
Flexibility is standard
Limited Resources
Operations oriented
Flat hierarchical structure
Operations Oriented Management
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Video
B737 Moving Line Renton
https://www.youtube.com/watch?v=1fJu_-a2tCQ
General Aviation Maintenance Department
https://www.youtube.com/watch?v=AINU_FSobsg
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Drive for procesimprovement:
• to increase competitive position
• to innovate current MRO processes
“We need to pull MRO out of the stone-age”
CEO Braathens Technical
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Impact of inefficiënt MRO on business itself
If TAT low, then A/C availability high
Or, if TAT is low, then more A/C can be maintained
per year > more revenues for the MRO.
Men
Machines
Aircraft
Serviceable
Operational Maintenance
aircraft
(with defects)
Methods
Materials
Impact of inefficiënt MRO on airline
Need more time, energy,
materials, etc. To get the
Not organized
job done.
Impact on Cost
for the airline
Impact on TAT
Reduction of
airline capacity
What makes this process efficient
• Disciplined and standardized process
• Tools and materials at location (point of use)
• Movement and transportation reduced to a minimum
• Strict task allocation (everybody knows his/her task in the whole)
• Visual marks indicating stopping position (visual management)
• Redundant tooling (critical parts identified).
• Everything moves and has purpose (flow, adding value)
LEAN why?
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LEAN – process improvement
 In short, LEAN boils down to:
a way of working (i.e. a set of tools, principles) that
aim to maximize customer value through the
reduction of waste.
LEAN – PROCESS IMPROVEMENT
Everything is a process Better processes, means:
• Manufacturing • Better products, faster
• Education • Higher Quality,
• Transportation • On-time, no delays
• Buying a smartphone • Quick delivery
 Introduction – waste (muda)
• Overproduction
• Excess inventory
• Defects
• Non-value added
processing
• Waiting
• Underutilized people
• Excess motion
• Transportation
Time value map: to be used in combination
with value stream mapping.
- Value added = transformation of product or
service
- Non-value added = pure waste
- Essential / necessary non-value added time
LEAN boils down to:
• Maintaining an unrelenting focus
on providing customer value
• Adopting a philosophy of
continuous, incremental
improvement
• Providing exactly what’s needed
at the right time, based on
customer demand.
• Keeping things moving – in a
value-added, effective manner.
• Techniques for reducing and
eliminating waste.
• Respecting people.
• Taking the long term view.
 Wat is Lean? Doe…
… alleen Minimale
activiteiten die kosten
waarde
toevoegen Klant
krijgt wat
… om de door de hij nodig
Lean klant vereiste Juiste kwaliteit heeft op
kwaliteit te het juiste
leveren … moment,
zonder
… op het vroegst fouten.
mogelijke Minimale tijd
moment.
bron: Ploegwerk
• LEAN: proces
optimization thru focus
customer value and
reduction of ‘waste’.
• Womack, Jones 2003
• Define Value
• Focus on value
stream
• Create flow
• Introduce pull
• Perfection
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Historie van Lean en Six Sigma
Built from over
50 years of
business 1950’s – 70’s 1980’s 1990’s 2000’s
improvement
▪ 1950s: ▪ 1980s: ▪ 1990s: ▪ 2000:
W. Edward Deming - Motorola BPR Lean Six Sigma
Business Plan-Do-Check-Act initiates ”Six Lean adoption
Improvement ▪ 1960s/70s: Sigma Quality” manufacturing increases
Tools/ Toyota Lean Production - TQM application to ▪ Focus on
Methodes System - Malcom non-automotive “process
Baldridge industries begins excellence”
Award
▪ Primarily Automotive and ▪ Expansion ▪ Beginning of use ▪ Automotive
Heavy Equipment across in ▪ Consumer
Automotive and Pharmaceutical Business
Manufacturing and Financial ▪ Pharmaceutical
Sectoren Services ▪ Healthcare
▪ Financial
Services
▪ Public Sector
Lean Framework
From: “The Machine that changed the World” 1990
1. Value
Know what is valuable to the customer. Ask the question: What is the customer
willing to pay?
2. Value stream
Get waste from the production stream, focus on added value
3. Flow
Make the flow of production reliable, even and flexible
4. Pull
Work demand-driven and just-in-time
5. Continuously improving
Try to improve continuously; Quality at source and collaboration internally and
externally
Thinking Lean
• Specify value from the perspective of the ultimate customer
• Identify the value stream to expose waste
• Create flow to reduce batch size and work-in-process
• Make only what the customer has ordered
• Seek perfection by continuously improving quality and eliminating
waste
2. Focus on
1. Identify 4. Establish 5. Strive for
the value 3. Create Flow
Value Pull perfection
stream
 2. Focus on
1. Identify 4. Establish 5. Strive for
the value 3. Create Flow
Value Pull perfection
stream
Lean Framework
1. Value
2. Value Stream
3. Flow
4. Pull
5. Continuously improve
 Assess customer value
Customers
1. Voice of the Customer (VOC)
Clients
3 customer Suppliers
categories 2. Voice of the Business (VOB)
Business partners
Lean
3. Voice of the Employee (VOE) The employee
Identify
• Examples
• Performance indicators
of customer value delivered by an Aviation
MRO organization
Lean Framework
1. Value
2. Value Stream
3. Flow
4. Pull
5. Continuously improve
 Value Stream Map for an industrial air-conditioning installation
service
T/T = Task time
TTT = Total throughput time
VAT = Value-added time
C/T = Cycle time
Sales Operations
office planning Cash
Forecasts Invoice management
status
Job-tracking confirmations
Completion
confirmation
Survey Order Assemble Frame Install
Wait in Wait for Ship to Wait for
branch assembly branch and installers
wait
T/T = 0.5 T/T = 0.5 T/T = 5.0 T/T = 0.75 T/T = 0.75
Avail = 100% Avail = 100% Avail = 100% Avail = 100% Avail = 100%
C/T= 30 C/T= 10 C/T= 12.5 C/T= 17 C/T= 35
58 hrs. 96 hrs. 48 hrs. 48 hrs. TTT = 258 hrs
30 mins. 30 mins. 5 hrs. 60 mins. 60 mins. VAT = 8 hrs
(some) LEAN tools
• Value Stream Mapping
• Helps you visualize more than the single process level
• Links the material and information flows
• Provides a common language
• Provides a blueprint for implementation
• Ties together lean concepts and techniques (i.e. waste, work ballancing,
etc.)
• The Mapping Process
• Follow a “product” or “service” from beginning to end, and draw a visual
representation of every process in the material & information flow.
• Determine bottlenecks, problems, non-qualities, etc.
• Then, draw (using icons) a “future state” map of how value should flow.
• Develop and implement a plan to create the future state
(some) LEAN tools
What are causes of (long) lead times in
Aviation MRO?
 What is the Value Stream in maintenance
Unplanned activities related to solve a breakdown
Planned activities:
1. Corrective maintenance,
2. Preventive and predictive maintenance,
3. Operation support,
Value 4. Investment projects
stream can 5. Spare part production or repair
be
translated Supporting:
as 1. Equipment master data management
2. Purchasing services and parts
processes
3. Warehouse management
4. Reporting
5. Documentation management
6. Hr- training
7. Early Equipment management
Improvement:
1. Registration analysis and improvement 35
8 Wastes (part 1)
1. Overproduction
The worst type of waste, processes are unnecessary
Products that the customer don’t want
2. Waiting time
Waiting for material, people and resources
Often filled with activities that do not add value
3. Transport
Often or far displacement of material or people
The time, energy and money that this costs is not visible to the customer
4. Over processing
Repairs, reprocessing, inconvenient order
Customer only pays for "in 1 time right"
8 Wastes (part 2)
5. Unnecessary Stock
Materials and products that are not needed immediatly
Often caused by inaccurate control
Money and space. Risk of damage and aging
6. Unnecessary movements
Due to poor layout or workplace and organization
Walk, sort out and adds no value
7. Defects
Result does not meet specifications or expectations
Much repair work, explanation and lost sales
8. Talent
Examples of Waste in Aviation MRO?
 Waste in Maintenance
Not the right processes:
• No feedback loupes or improvement PDCA’s in place for processes and content
• Not in place:
• Early equipment management
• License to operate processes
Process design:
Processes

• Too many steps

• Variability in steps (everyone does it differently)
• Too many organizational elements involved
• Not needed steps
• Bad connections between steps
Process adherence
• Behavioral aspects
Process Effectiveness
• Not effective: OEE and EE too low
In waiting, movement and transport:
Waiting • Looking for parts and documentation
• Waiting for a job (inflexibility) or the equipment to maintain
• Waiting for a specialist colleague 39
• Distance Spare part warehouse, documentation or shops vs equipment to be maintained
 Waste in Maintenance
Processing

Over processing: Over maintenance (Cost Related)

Over

• Wrong strategy
• Unneeded maintenance (too much)
• Frequency to high
Use of Resources (Cost Related)
• Spare parts on stock
Stocks

- Non movers
- Too much or to less
- Complex purchasing process
• Use of Third parties
Right first time
Rework

Lack of knowledge or responsibility:

• Long trouble shooting process
• Skilled in either mechanical or electrical jobs
• No standardization
Talent Talent not use wisely:
• Skilled technicians doing simple jobs
• Operators not involved in autonomous maintenance 40
Lean Framework
1. Value
2. Value Stream
3. Flow
4. Pull
5. Continuously improve
 Een gestroomlijnd proces (Flow)
bron: Ploegwerk
 Focus on value added activities
A streamlined process (Flow)
Before Start Action 1 Action 2 Action 3a Action 4a Action 5 Einde
Action 3b Action 4b
After Start Action 2 Action 3a Action 5 Einde
Value added Waste
Examples of FLOW in Aviation MRO or
examples of bad FLOW?
(some) LEAN tools
Flows in an production proces (old)
Lathing Milling Drilling
L L M M D D
D D
L L M M
Grinding
L L M M
G G
L L Assembly
G G
A A
Receiving and A A G G
shipping
Flows after improvement
L L M D G Assembly
area
Cell 1 Cell 2 A A
Receiving L M G G
Cell 3
L M D
Shipping
Shorter change over time....
Lean Framework
1. Value
2. Value Stream
3. Flow
4. Pull
5. Continuously improve
 Lean operations: JIT
JIT material flow
Buffer Buffer
inventory inventory
Traditional
Stage A approach Stage B Stage C
JIT approach
Orders Orders
Stage A Stage B Stage C
Deliveries Deliveries
 Delivering smaller quantities more often can reduce
inventory levels
Supply to efficient spare parts inventories
Inventory
levels
Inventory
levels
What policies / rules are associated with
spare parts management in Aviation MRO?
Kanban
• Simple signaling tool to indicate when an item needs to be moved or
produced. Is a digital signal, a card or an empty container
• Uses containers with a fixed amount of contents => The number of
containers defines the production or displaced amount
• Can be used to sync activities within the organization or between
partners in the supply chain.
• Is not a planning tool; Kanban systems send the actual execution of
production and movement activities
Kanban example
Receiving post
Kanban card for Storage
product 1 area
Kanban card for
product 2
Empty containers
Assembly line 1
O2
Fabrication
cell
O1 O3 Assembly line 2
Full containers
O2
Lean Framework
1. Value
2. Value Stream
3. Flow
4. Pull
5. Continuously improve
Principe 4: In één keer goed (Jidoka)
Continuous improvement (Kaizen)
Observations (gemba walk)
Kaizen
• Kaizen (Ky’zen)
• “Kai” means “change”
• “zen” means “good (for the better)”
• Gradual, orderly, and continuous improvement
• Ongoing improvement involving everyone
• One of the core components of lean
Can be used as:
(1) Long term organizational philosophy.
Organize for continuous improvement
(2) Short Kaizen events, organized to improve a
specific situation
 What is the cause of the
problem?
In this section the root cause of the problem is described.
The rough problem and its underlying problems are
presented.
LEAN tools /elements that can be
used:
• Fishbone diagram
• 5 x Why?
• Experiments (hypothesis
testing) using 6 Sigma
(some) LEAN tools
(some) LEAN tools
(some) LEAN tools
Pareto charts
• Pareto charts are easy
to use and are handy to
determine what problem
to focus on first
• Useful to see what 20%
of the problems are
causing 80% of the
complaints.
Buffers (inventory, overcapacity)
hide problems
Problems become visible
when buffers are eliminated
Quality starts at the source
• Visual control • Jidoka
• Makes problems visible • Power to stop production if you
notice an error
• Poka-yokes
• Prevents errors • Andons
• Alerts that occur when an error
is made
• Kaizen
• A system of continuous
improvement with commitment • Sub-capacity planning
of all • Ensures that planning is over
time for maintenance and
solving problems
 Jidoka
• Jidoka is providing machines and operators the ability to detect
when an abnormal condition has occurred and immediately stop
work. This enables operations to build-in quality at each process and
to separate men and machines for more efficient work.
• Jidoka is one of the two pillars of the Toyota Production System
along with just-in-time.
• Jidoka is sometimes called autonomation, meaning “automation
with human intelligence”.
Examples of visual control
First time right (Poka Yokes)
Some examples of lean tools: Poka Yoke
Poka Yoke and Mistake Proofing
• The use of process or design features to prevent errors or
their negative impact.
• Also known as Poka yoke, Japanese slang for “avoiding
inadvertent errors” which was formalized by Shigeo Shingo.
• Inexpensive
• Very effective.
• Based on simplicity and ingenuity.
 5S
2STRAIGHTEN
3
SWEEP
(Orderliness)
Keep needed items in (Cleanliness)
the correct place for Keep the
easy and immediate workplace swept
removal. and clean.
1
SORT
(Organization)
Clearly distinguish
needed items from
unneeded items and
eliminate the latter.
5 4
SUSTAIN STANDARDIZE (Control)
(Discipline) Make all of the above
Maintain these known, standard practice.
procedures. Make This condition supports the
5 S part of daily previous three pillars.
operations.
 Some simple examples of lean tools
• 5S
• A method of workplace organization
• Reduces wastes due to clutter, time to find materials and equipment,
duplication of equipment, floorspace, inconsistency
• Components of 5S
• Sort
• Straighten
• Shine
• Standardize
• Sustain
Find missing numbers – 5S example
 Find missing numbers – 5S example
Simple but effective!
1 2 3 4 5 6 7 8 9 10
11 12 13 14 15 16 17 18 19 20
21 22 23 24 25 26 27 28 29 30
31 32 33 34 35 36 37 38 39 40
41 43 44 45 46 47 48 49
1 2 3 4 5 6 7 8 9 10
11 12 13 14 15 16 17 18 19 20
21 22 23 24 25 26 27 28 29 30
31 32 33 34 35 36 37 38 39 40
41 42 43 44 45 46 47 48 49 50
Less errors
Quicker
Standard Work
• Each step in a process should be defined and must be performed
repeatedly in the same manner.
• Variations in the process will create quality problems requiring costly
rework or scrap.
• Defines the most efficient methods to produce product using available
equipment, people, and material (no personal best practices).
• Depicts the key process points, operator procedures, production
sequence, safety issues, and quality checks.
• Identifies the amount and location of WIP inventory in the cell.
Overview of LEAN features
1. Tools to analyse the
current situation /
problem.
2. Methods / principles to
improve the situation.
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