MIT 15 763J - Implementing Lean Manufacturing Through Factory Design

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Implementing Lean Manufacturing Through Factory Design By Jamie W. Flinchbaugh B.S. Mechanical Engineering, Lehigh University, 1994M.S. Mechanical Engineering, University of Michigan, 1996Submitted to the Sloan School of Management and the Department of Mechanical Engineering in Partial Fulfillment of the Requirements for the Degrees of Master of Science in Management and Master of Science in Mechanical Engineering at the Massachusetts Institute of Technology May 1998 © 1998 Massachusetts Institute of Technology. Signature of Author Sloan School of Management Department of Mechanical Engineering Certified by David E. Hardt, Thesis Supervisor Professor, Department of Mechanical Engineering Certified by Janice Klein, Thesis Supervisor Senior Lecturer, Sloan School of Management Accepted by Anthony T. Patera, Chairman of the Graduate Committee Department of Mechanical Engineering Accepted by Lawrence S. Abeln, Director of Master’s Program Sloan School of ManagementPage 1Implementing Lean Manufacturing Through Factory Design By Jamie W. Flinchbaugh Abstract Factory design can play an important role in the diffusion of new technologies for manufacturing. Historically, factory design impeded the electrification of factories because there were significant interrelationships between the factory infrastructure and electric manufacturing processes. These interrelationships could not be fully leveraged partly because huge investments were tied up in the old factories but more importantly it took a long time for people to understand all of the interrelationships that constituted an entirely new technological system. I explore in this thesis that the diffusion of lean manufacturing suffers the same fate as factory electrification, and therefore exploring the interrelationships that make up lean manufacturing systems, including factories, will help extend the adoption of lean manufacturing in U.S. factories. I explore the relationships between factory design and lean manufacturing through two tools, axiomatic design and a queueing model. Axiomatic design is a process that helps the user derive the physical design parameters of the factory from the systems and functional requirements. The process helps draw out the explicit understanding of factory design and lean manufacturing and make it explicit. Axiomatic design helped me explore the essence of a lean factory, which can be summarized by the following features: independent departments through buffers and management structures, decentralized support activities to support problem solving and continuous improvement activities, and modular and scalable factory features which allow ease in continuous improvement in factory layout. I used the queueing model to explore the relationships between the various design parameters of the lean factory and throughput performance. Throughput can be improved by shortening line segments, increasing the quantity and size of accumulation buffers, designing over-speed into upstream line segments, and allowing time to reset buffers with a two-shift policy. All of these parameters cost investment dollars and should be used only in moderation. The model also explored variation reduction through the development of a strong set of problem solving skills. Variation reduction provided the same benefit as other parameters, but required no investment costs, and is therefore a superior leverage parameter. Finally, I explore the issue of launching the new lean factory. I discuss the risks involved in launching a lean factory, and potential mechanisms to balance the need of learning with the need for efficient production. A well-developed training plan, on-line coaching and launching organizational changes before launch can all help alleviate the risks. The issue of implementing the factory is as critical as designing the factory. Thesis Advisors: Jan Klein, Senior Lecturer, Sloan School of Management Dave Hardt, Professor, Department of Mechanical Engineering Page 2Acknowledgements I wish to acknowledge the support of the Leaders for Manufacturing Program, a partnership between MIT and major U.S. manufacturing companies, under whose sponsorship this research was done. I wish to thank Chrysler Corporation and Chrysler Manufacturing in several ways. First, Chrysler Manufacturing is dedicated to learning and improvement, and in that spirit they sponsored me in my improvement in the Leaders for Manufacturing Program. wish to thank the project team that I worked with on my internship for their openness and willingness to learn, particularly my supervisor, Helen Lau. I also wish to thank all of those individuals at Chrysler who inspired, coached, and guided me. Without all of you I would never have made it as far as I have. I wish to thank those from MIT who provided help along the way. I thank my thesis advisors Jan Klein and Dave Hardt in their guidance and collaboration in designing my internship experience. I want to thank Steve Graves and Sean Willems for their collaboration in exploring modeling with me. I want to thank the many faculty members who were willing to explore questions and share their work along the way. Finally, I thank the LFM Class of 1998 for their friendships, experience, and spirit of mutual learning. You made this experience worthwhile. I wish to thank all of you who have helping, inspired, and taught me along the way. There are too many to name, but none of you did what you did for recognition, but instead out of caring and giving. I wish to thank my parents in York for raising me the in the way that they did, and my parents in Chicago for caring for me and accepting me into their family. I thank my beautiful wife Jill Triani. I dedicate this work to you, because I do not have the words to express my love, respect, and gratitude for what you bring to me and to life. Page 3 I“There is a joy in manufacturing only poets are supposed to know.” - Chrysler Corporation founder Walter P. Chrysler Page 4Page 5Table of Contents ABSTRACT.............................................................................................................................. 2 ACKNOWLEDGEMENTS ...................................................................................................... 3 TABLE OF CONTENTS.......................................................................................................... 6 CHAPTER 1: INTRODUCTION AND


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