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INDE 7397

Improving Productivity at Hardy Machines with Lean
Report












by
Kartheek Vadlapatla 1278272
M.S., Industrial Engineering
University of Houston - Systems





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Acknowledgement
I wish to thank President Ankur Goel of Hardy Machine and Design and Dr. Sharukh
Irani for their tremendous contributions and support towards the completion of the
project. I am also grateful to my project supervisor Dr. Suresh Khator who without
his help and guidance this project would not have been completed. I also show my
gratitude to my friends who contributed in one way or the other in the course of the
project.

















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Table of Contents
Title Page No:
Acknowledgement 2
Table of Contents
List of Tables
List of Figures
Introduction 4
Problem Statement
Goal and Objective 6
1. Proposal 1 5S
1.1 Data collected at Hardy
1.2 Need for 5S
1.3 Steps in 5S implementation
2. Proposal 2 S.M.E.D
2.1 Data collected at Hardy
2.2 Need for S.M.E.D
2.3 Steps in implementation of S.M.E.D
3. Conclusion
References

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LIST OF TABLES
Table 1 - Time studies performed during the CNC Lathe setup
Table 2 - Time studies are performed during the Milling machine setup
Table 3 - Internal and External activities during CNC Lathe machine 406 setup
Table 4 - Internal and External activities during CNC Lathe machine 408 setup






















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LIST OF FIGURES
Figure 1 Time consumed to perform various operations during CNC Lathe setup
Figure 2 - Time consumed to perform various operations during milling setup
Figure 3 - Percentage of Value added and Non Value Added Work
Figure 3 Rack used for placing Milling Tools
Figure 4 Empty Micrometer Box
Figure 5 Milling tool Holder without screw
Figure 7 Grinding Dust
Figure 8 Machine is down for 3 Hours due to hydraulic pump failure caused by Oil Leak
Figure 9 - Oil spilling
Figure 10 - Scrap material on shop floor can cause trip hazard
Figure 11 - Fork Lift blocking the path of crane used for moving job pieces
Figure 12 job Pieces damaged by the fork lift because the where not placed in the proper
location on the Shop floor
Figure 13 - Red Tag
Figure 14 - 5S Audit for Hardy Machine and Design
Figure 15 Percentage of internal and external activities during Machine 406 Setup
Figure 16 Percentage of internal and external activities during Machine 406 Setup








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Introduction
Hardy Machine & Design, Inc. is a modern job shop specialized in manufacturing
components for Oil and Gas, Aerospace and Health Industry. The company has over
25 years of experience in its field and this experience is combined with current
working methods and techniques. The company has reached a leading position in
Precision Machining, Fabrication and Welding. The companys principles are to
invest into high class machines and the newest machining methods and to keep the
working environment in an excellent shape.

Hardy is a Make to Order (MTO) Job shop which manufactures a wide variety of
products in low volumes. In a job shop environment the demand for customized
products vary from day to day and Customers expectations are unpredictable. As a
result of customization, manufacturing environments gets complicated. Added to
this, customers also expect the product to be delivered only a short period of time
after placing their orders. This situation creates competition among Hardy and their
competitors to manufacture and deliver products as fast as possible while
emphasizing the importance of minimizing lead times.

Problem Statement
Major problems at Hardy Machine and Design are their longer setup times and
inventory/Tooling management. Firstly, longer lead times are causing customer
dissatisfactory. Secondly, regarding the Tooling management, Hardy loosing
machine spindle time due lack of point of use of tools and spending large amount of
money in purchasing misplaced and lost Tools.

Goal and Objective
The purpose of this project is to identify the root cause for Non value added activities
that increases the setup time and inventory, and to propose LEAN methodologies to
increase the productivity without sacrificing Quality



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1. Proposal 1 - 5S
The 5S-operation model is one part of the Lean model. It is just one of the many
tools which the Lean-ideology includes.5S was originally developed by JIT expert
Hiroyuki Hirano. The 5S frame work is an extension of Hiranos earlier work on
Just in Time production Systems.5S represents a simple housekeeping approach to
improve work environment. In general, 5S approach include the control over the
work flow rather than workers behavior. It is relatively inexpensive to implement.
It makes job safer and easier. It encourages preventive approach that prevents
problems before they occur. It provides a practical approach for dealing with real
problems, faced by the workers. 5S consists of five (5) different phases. The names
of the phases come from Japanese and all of them begin with the letter s. That is
where the name 5S stems from. The phases are:

- Seiri = Sort
- Seiton = Stabilize/Set in order
- Seiso = Shine/Sweep
- Seiketsu = Standardize
- Shitsuke = Sustain.

The two most important elements are Sort and Set in Order. The success of
improvement activities depends on them. The 5S system sounds so simple but it on
important lean methodology, without implementing 5S other Lean concepts cannot
be implemented [1]. Moreover, Cleanliness and order characterize significant issues
both for customers and potential labor force. The starting point is that profitable and
high-quality tasks can be conducted only in a clean environment. The basic idea is
to increase productivity, to improve the level of quality and to raise work ethic.
These factors are reached when the working environment is clean and in good order.
5S is a practical tool for maintaining these. It helps to find and eliminate problems
in time. The 5S-model is special because it can be applied in to an office as well as
in the production of a company. Systematic and disciplined operations are developed
with the 5S-model.






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1.1 Data Collected at Hardy













Table 1 - Time studies performed during the CNC Lathe setup
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Figure 6 Time consumed to perform various operations during CNC Lathe setup



Setup
31%
Search for Supervisor
3%
Discussion with
Supervisor
1% Search for Tools
7%
Search for Bolt
6%
Search for Handle
17%
Operator is out of office
35%
Setup Search for Supervisor Discussion with Supervisor
Search for Tools Search for Bolt Search for Handle
Operator is out of office
Work Time
31%
Non value added
Time
69%
Work Time Non value added Time
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Table 2 - Time studies are performed during the Milling machine setup
Figure 7 - Time consumed to perform various operations during milling setup
0
5
10
15
20
25
30
Duration
Setup Search for Holder Search for Drill
Fixing Drill and Holder Search for two collets Fixing collet to Drill Holder
Search for second tool Holder Fixing Tool holder and Tool
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Figure 8 Percentage of Value added and Non Value Added Work




Figure 9 Rack used for placing Milling Tools

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Value added Work Non Value Added work
VA vs. NVA Work
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Figure 10 Empty Micrometer Box Figure 11 Milling tool Holder without
screw

















Figure 8 Machine is down for 3 Hours
due to hydraulic pump failure caused by
Oil Leak
Figure 9 - Oil spilling Figure 10 - Scrap material on shop
floor can cause trip hazard
Figure 7 Grinding Dust
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1.2 Need for 5S:
During interaction with Operators and Management, and after performing Time
studies for Setup Operation, we had noticed that time for searching and picking up
tools, equipment and other materials was significantly too long. Added to this rework
due improper material Handling Techniques is also high. Useless time goes by and
it harms the fluency of work. Hence by implementing 5S Philosophy, the
productivity and the quality can be increased, work in-processes and lead-times can
be reduced, better working circumstances can be created, searching times and costs
can be decreased, Moreover, it also helps in rising company image.

In fig-1, the activities marked yellow, performed by the Lathe operator can be
eliminated by implementing 5S.This activities add up to 30% of setup time.
Similarly, in fig-2, the non-value added time that adds up to 41% can be eliminated
by 5S. It is found that the milling operators needs 10-15 mins to find the tools placed
the rack (Fig 4) and some of the tools are lost or misplaced due lack of dedicated
storage place(Fig 5,6). This can be eliminated by implementing First S and Second
S (sort and set in order) in 5S Philosophy. Grinding dust (Fig -7) can lead to health
hazard and Oil spills (Fig 9) on shop floor can lead to slipping hazard. This can
eliminated by implementing shine.


Figure 11 - Fork Lift blocking the path of
crane used for moving job pieces
Figure 12 job Pieces damaged by the fork lift
because the where not placed in the proper
location on the Shop floor

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Added to this, other benefits of implementing 5S are:
To gain control on equipment, material & inventory placement and position
To eliminate the waste that result from uncontrolled processes.
To ensure that improvements are sustained
To Standardize critical processes such as Tool storage ,Machine clean up and
Machine maintenance
To improve consistency of shop supervision


1.3 Steps in 5S implementation:

Phase 1 - Sort
The first phase is called Sort. Main point in this first phase is simply to sort
everything. Every tool, object and instrument is looked through and every one of
those will be recognized and the demands of those are evaluated. This phase also
includes a task where criterions are created. Removable products will be sorted and
after that, disposed of. Also useful products will be sorted and new places are created
after sorting.

Mostly used method in sorting-phase is Red-tag program. The removable or
somewhere else storable products are marked with a red tag. That tag tells, for
example, as shown in Fig 1, the name of the inspector, date, demand, reason of the
tag, storage place and disposition date. Jigs, molds, junk and work-in process are
often accumulated all over the stations and the purpose is to get rid of all these. First,
all the tagged products are moved into the red tag area and after that, either
positioned again or removed for good.
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Figure 13 - Red Tag

Removing useless items clarifies working environment and gives more space to act.
Sorting helps everybody to keep places clean and in good order. Moving and safety
at work gets better, it saves and increases space, clarifies processes and gives a
chance to save up in cleaning.

Phase 2 Set in Order
The main purpose of stabilization is to find practical depository for every requisite
instrument and those depositories should be marked properly. Every single item,
which is necessary in working, will be organized in a way that those can be found
easily when needed. Setting in order assures that it is a snap for everyone to find,
take in use and put away the needed item. Target of all these actions is to eliminate
pointless searching, improve safety at work and make working environment better.
Places of the equipment are not the only things which are marked. It is advisable to
mark tools itself for example with colored cable ties. Marking off the floor and
dividing it into stations is a wise thing to do. That creates passages and clarifies
movements in the production areas. When pulling the lines, it is useful to mark
places for pallets, pallet jacks and garbage cans at the same time. Color-codes and
signs are used to prevent the equipment getting mixed-up.



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Phase 3 - Shine
It is not enough if phases one and two alone are implemented. First two phases
remove problems in relation to space but one problem is hiding around the corner.
Dirt wear down machines and makes quality worse. Third phase, Shine, is created
for these problems. Everything will be cleaned up when operation model reaches
this point, Floors, tools, tool racks, devices and especially machines. Engine life
increases and everything will be ready for instant use when those are cleaned. This
leads automatically into situation where everything is kept in top condition.

Phase 4 - Standardize
Carrying out a 5S-campaign once in a cell or work station is a pushover. Without
daily discipline and clear follow-up and operation routines it is too easy to return
into old habits. That is why the management level should set annual 5S-goals for
every station and employee. Fourth phase is Standardization. This stage is destined
to create procedures and routines. Those should be guiding three (3) earlier phases
into continuous and developing course of actions. Purpose of this phase is to take in
use and maintain all that, which is created earlier in sorting, stabilizing and shining.
Target is to change constant methods into standards which employees are expected
to obey. Mundane tasks are established and those are followed precisely. Instructions
should be so crystal clear that almost everyone could check the station with the help
of those standard methods. Actions are being supervised and followed by persons.
Everyone should know what to do. Check lists are created in standardization phase
and on by a way of those the level of operation model is monitored.

Phase 5 - Sustain
Last phase is sustaining the level which is reached with four earlier phases. Standards
methods and balanced workplace are maintained and followed all the time. Methods
that are under adoption are improved continuously. Improvement has to be one part
of sustain because the environment should be improved with the help of results from
follow-up. Internal audition lists should be created in the phase five, and auditions
should be made at regular intervals. The results from the auditions should be
gathered and put on to bulletin boards so that everyone can see and follow up the
development of 5S-actions. Evaluation should include, happened changes and
comparison to earlier months. Audition is essential tool in progress of pushing
cleanliness and sustaining a creditable level of order.



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Figure 14 - 5S Audit for Hardy Machine and Design





















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Proposal 2 - S.M.E.D

Single Minute Exchange of Die is one of the many Lean production methods for
reducing waste in manufacturing process. It provides a rapid and efficient way of
converting a manufacturing process from running current product to running the next
product. This rapid changeover is helpful in reducing production lot sizes and
thereby improving flow. It is also often referred to as Quick Changeover (QCO).
Performing faster changeovers is important in manufacturing, or any process,
because they make low cost flexible operations possible.

The concept of SMED is created by shigeo shingo, one of the main contributors to
Toyota Production system. According to Shingo, if the change over time can be
reduced, then the economic lot size could be reduced, directly reducing expenses.
Shingo also stated that large lot sizes requires higher stock levels to be kept in rest
of the process and these hidden costs, are also reduced by smaller lot sizes through
implementing SMED [2].

The following eight techniques [3] should be considered during the implementation
of SMED:
1. Separate internal from external setup operations
2. Convert internal to external setup.
3. Standardize function, not shape.
4. Use functional clamps or eliminate fasteners altogether.
5. Use intermediate jigs.
6. Adopt parallel operations.
7. Eliminate adjustments.
8. Mechanization.

In general, the idea behind the SMED methodology is to convert internal setup
operations to external operations. This method is highly recommended to reduce
changeover time, thereby allowing extra production time to increase output [4].




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2.1 Data collected at Hardy:

Further analysis has been made, to identify the percentage Non value added
internal activities performed during setup operation and results are shown in table
3 and table 4.
Table 3 - Internal and External activities during CNC Lathe machine 406 setup


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Figure 15 Percentage of internal and external activities during Machine 406 Setup
Results:
Total Time required for setup 60 mins
Time for Internal setup 34 Mins
Time for External Setup 26 mins

External
40 %
Internal
60 %
Machine 406 Setup
External Internal
Table 4 - I nternal and External activities during CNC Lathe machine 408 setup


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Figure 16 Percentage of internal and external activities during Machine 406 Setup
Results:
Total Time required for setup 31 mins
Time for internal setup 16 Mins
Time for External Setup 15 mins

2.2 Need for SMED:
As seen in figure 1 and figure 2, Non-Value Added can be reduce to 40% by
implementing 5S, the activities like discussion with the supervisor, and fixing drill
and holder cannot be eliminated.
From table 2 and table 3, it can be noted that the more than 50 % of activities
performed during the setup are external operation. This activities are performed
as internal operation. By implementing the concept of S.M.E.D, Non Value Added
time can be further reduced.





External
48 %
Internal
52 %
Machine 408 Setup
External Internal
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2.3 Steps in implementation of SMED:
The SMED methodology consists of two phases. In the first phase, a distinction is
made between internal and external setup tasks. Internal setup operations are
those that must be performed when the machine is stopped. These operations
occur on-line to the machine. External operations are those that can be performed
while the machine is in operation. It is more efficient to perform these tasks off-
line from the machine. Once the operations are classified as either external or
internal, the external operations can be moved off-line to reduce machine
downtime.
In the second phase of SMED, all aspects of the setup, both internal and external,
are streamlined to make them more efficient. Internal setup efficiency results in
labor savings and less downtime machine capacity. External efficiency does not
directly improve downtime, but gives better utilization of labor. Since at the factory
or line level labor can be a constraint on doing setups, it can also indirectly reduce
downtime.

Conclusion:
By implementing 5S and S.M.E.D the setup time can be reduced by 70%.This
projects can also help Hardy to minimize tooling issues and reduce inventory.







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References:
[1] 5S for Operators: 5 Pillars of the Visual Workplace (For Your
Organization!) Paperback March 1, 1996 by Hiroyuki Hirano
[2] Eliyahu Goldratt, 1990, Theory of Constraints, North River Press, Massachusetts,
pp. 40
[3] Shigeo Shingo, 1989, A study of Toyota Production System, Productivity Press,
New York, pp. 47
[4] Greg Lane, 2007, Made To Order Lean, Productivity Press, New York, pp. 66