Survivor: Lean Island
Journey of Lean and Cultural
Impact
American Society for Quality
November 16, 2004
Q C
C
D
Speakers
• David Velie • Craig Todd
• BBA from Lee • BSIM from University
University of Cincinnati; MBA
• 13 Years of from Xavier
Manufacturing • 14 Years of
• Consulting 2 ½ Years Manufacturing
• Consulting 3 ½ years
Q C Total Companies of Lean
C Implementation = 24
D
Q C
C
D
Goals of Today
• Better understanding the concept of
Lean and what it means.
• The Cultural Impact of Lean.
• Real Life implementation stories.
Q C
C
D
What about YOU
• Your current role at your company.
• Your understanding of Lean and the
importance of cultural change.
• Where is your company on the Lean
Journey.
• Most important – your role as the Survivor
and Champion.
Q C
C
D
What is Lean?
• Cultural Shift
• Customer Focus
• Stages of Lean
• Waste Elimination Focus
• Expectations through measurements
• Sustainability
Q C
C
D
Stages of Lean
Level 4 – Visual Management
and Policy Deployment
Level 3 – Production Smoothing
and Mixed Model
Level 2 – Takt Time and Pull
Production
Q C
C Level 1 – Waste Elimination
D
Draw Wire Hot Dip Distribution
120,000 /day 6 weeks
4 Slide Package
Q C
C
D
In-Sourcing of Packaging
• Extra Week In Supply Chain
• Dedicated local driver
• Had all 9 forms of waste
• Space required for WIP - Queue
• Quality Problems with Packager
• Vendor provided service at inflated cost
Q C
C
D
So we jumped into the deep end head first
Q C
C
D
Try Storming Evolution
In-sourcing of packaging
Willie
Q C
C
D
Lead time from 6 weeks to < 2 days
Reduced 3,000,000 pintles in WIP
Reduced transportation cost by $200,000 / year
Reduced packaging cost by $250,000 / year
Anybody need to lease a truck?
Team pulled together / Try Stormed / Still Shocking the Culture
Q C
C
D
Stages of Lean
Level 4 – Visual Management
and Policy Deployment
Level 3 – Production Smoothing
and Mixed Model
Level 2 – Takt Time and Pull
Production
Q C
C Level 1 – Waste Elimination
D
Waste or Non-Value Added
• An activity that takes time, resources or
occupies space but does not add value to the
final product.
• Affects negatively the Quality, Cost and
Delivery of the final product to the
customer.
• Causes your customer to go to your
competition for business.
Q C
C
D
Where to focus
Q C
C
D
9 Wastes
• Waiting • Defects
• Motion • Inventory
• Transportation • Excessive Information
• Processing • Untapped Creativity
• Overproduction
Q C
C
D
Overall Operational Process
• Understanding Current Process
• 5S
• Takt Time vs. Current Process
• Measurements
• Improvements and Waste Elimination
• New Process
• Sustainability
Q C
C
D
Understanding Current Process
• Macro level of Plant
• Cell Layout
• Value Mapping
• Benchmarking:
– Current Quality measurements: FPY
– Cost – Labor Standards, Material Variances
– Delivery – On-Time
Q C
C
D
5S
1. Sort
2. Set in Order
3. Sweep
4. Schedule
5. Sustain
Q C
C
D
5S Score Sheet
5S
Score
Sheet
Q C
C
D
Takt Time Calculation
Net Operating Time 480
Breaks - 20
Cleanup - 10
Net Available 450
450 min x 60 sec/min
200 Units/Day
Q C TAKT Time = 135 Sec./Unit
C
D
Time Observations
Process: Observer:
Clear Calc.
Step Operation 1 2 3 4 5 6 7 8 9 10 11 12 Task Sheet!
Task Cycle
Remarks
Element Time Time
(auto (man.
calc) Entry)
Time for 1 - Lowest Repeatable
Cycle (Sec) Cycle Time
Q C
C
D
Takt Time vs. Cycle Time
Observed Staffing = ____________
OCT
Optimal Staffing = ____Operators
T/T
Takt Time / Cycle Time Barchart Takt Time / Cycle Time Barchart
1
1
0.8
0.8
Total Time
Total Time
0.6
0.6
0.4
0.4
0.2
0.2
0
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Operator
Operator
Oper. 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Oper. 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Time
Time
Takt Q C Takt
Time C Time
D Before Kaizen After Kaizen
IMPACT DIFFICULTY MATRIX
10
I II
9
8
7
IMPACT TO BUSINESS
6
5
4
3
2
1
III IV
0
1 2 3 4 5 6 7 8 9 10
DIFFICULTY TO ACCOMPLISH
Q C
C
D
Part Name/Operation (shift): From Operator: Date Revised:
Work Sequence: of To Operator: Models:
Standard Work Layout Quality/Critical Checks
it
QualyCheck
Standard Operations Sheet et
Saf y
andar W I
St d P
Safety Equipment
d P y
St W I Qt This column
for graph
computation
Work Content Graph Gridlines = only. Do not
Oper0 5
print, do not
Work Content Description/Sequence (minutes) Man Auto
# delete.
0
0
0
0
0
0
0
0
0
0
0
Total Time = 0.00 0 - 0.00 = 0.00
Takt Time - Total Time = Wait Time
Q C
C
D
Team # Line Name:
Before Kaizen Actual %
Kaizen Results Achieved
Improvement Measurement Kaizen Objective Achievement Improvemen
t
# of operators/day (all shifts)
Total operator cycle time
Output (units/day)
Productivity (units/day/operator)
Work in process inventory
Floor space
Setup time
Quality (# of rejects/day)
Lead time
Safety
Ergonomics
Q C
C
D
Sustainability
• Start up Meetings – Daily
• Production Meetings – Weekly
• Link to Support Groups
• Managing, Measuring, Mentoring
3Ms
Q C
C
D
Cultural Shift
Tools vs people
People and processes do what they are
managed to do.. …… C/D
Their must be an impact on how it is
managed
“Good to Great”.. Jim Collins
Getting the people on / off the bus and
in the right seats
Q C
C
D
Cultural Shift
People + Results + Speed = Cultural Impact
Teach a man to fish…. Recreate yourself in
others to increase your impact…
The process that you apply
LEAN to is the vehicle for the
Cultural / Management
change ….…. Not the product
Q C
C
D
Why do this….
• Where do most manufacturers fit on the
QCD baseline.
– High Quality Producer
– Fast Delivery and quick to Market
– High Cost = High Price
Q C
C
D
WASTE
Quality Cost
Customer
WASTE WASTE
Q C
C Delivery
D
Quality Cost
Customer
Delivery
Q C
C
D
Why do this?
• Establish foundation
People /
Processes / Results
NPD
Growth Acquisitions
Acquisitions Growth
NPD
People /
Processes / Results
Q C
C
D
Goals of Today
• Better understanding the concept of
Lean and what it means.
• The Cultural Impact of Lean.
• Real Life implementation stories.
Q C
C
D
Where Lean goes next is up to you…
Q C
C
D