Making Lean Work in Your Company

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Making Lean Workin Your Company

Presented byTerry Norris

LeanConsultingWorks, LLC


Lean Defined Lean’s Origin 5 Principles / 8 Wastes / A3 Making Lean Work

Overview


Lean is an enterprise-wide strategy for achieving excellence…

...by creating value (from the customer's perspective)

…by creating a culture of continuous performance improvement and working to eliminate ALL waste of resources and time

…by creating high quality, stable processes and emphasizing respect for people throughout the organization.


What is Lean?







What is Lean?







What is Lean?







What is Lean?







What is Lean?


Lean Production...

‘Lean Production’ is “LEAN” because it uses less of everything compared to Mass-Production

Half the human effort in the factory

Half the waiting time for customers

Half the time to develop products

With far less than half the inventory

Result…

Fewer defects and more variety for customers!

Ref: The Machine That Changed the World,James P. Womack, Daniel T. Jones, Daniel Roos


Where did Lean come from?

Lean Philosophies / Methodologies


Forbes, 5-22-2012

• Lean is a methodology derived from the Toyota Production System

• Brought to the states by Womack & Jones 1990 (The Machine that Changed the World).

The Toyota Production System


How Can They Give Their Secrets Away?

Why Does Toyota Let Competitors Into their Plants?

Because What They Need to Learn They Cannot See.


5 Principles of Lean



Value (from the customer's perspective)

Value Stream (map the steps in the value stream)

Flow (create a smooth flow)

Pull (the right amount pulled at the right time, no more, no less)

Perfection (elimination of all waste in the value stream)

The Five Principles of Lean


The 8 Types of Waste



Types of Waste

D - Defects

O - Overproduction

W - Waiting

N - Non-standard and Overprocessing

T - Transportation

I - Intellect

M - Motion

E - Excess Inventory


What is an A3?

A3 Thinking


A3 ThinkingPDCA

1. Business Case / Problem Statement

Scope / Boundaries

2. Initial State

3. Target State

4. Gap Analysis

5. Develop Countermeasures

6. Develop an Action Plan

7. Confirmed State

8. Standardize, Sustain, Start Over

PDCA

PDCA

PDCA

PDCA

PDDCA

PDCA

PDCA

50% Trained

100% On-Time

75% On-Time

98% Trained


Making Lean Work

Lean Transformations


Overview

• Lean is a Strategy

• Expectations

• Typical Results

• Tips for a Successful Transformation

• Pitfalls to Avoid

• Getting Started

• Final Thoughts







What is Lean?


Significant Increase in:

- Productivity

- Usable Space

- Flexibility

- Employee Morale / Safety

- Customer Satisfaction

- The Bottom-Line!

Significant Decrease in:

- Lead times

- Work in Process

- Defects and Reworks

- Inventory

- Breakdowns and Changeover Times

What to Expect – The Positive


Examples of Lean Success Stories

Results of Successful Change


Setup Time Reductions at Wiremold

Equipment Type

Rolling mill

Ton press

P.M. punch press

Hole cut on mill 1228

2 1/2” extruder

Injection molder

Before

720

90

52

64

180

120

After

34

5

5

5

19

15

% Reduction

95%

94%

90%

92%

89%

88%

- Setup Times in Minutes

- Results from 1-Week Kaizen Events

Average Setup Reduction Time = 91%

Ref: The Lean Turnaround, Art Byrne


Lean Improvements at Wiremold

• Lead time dropped from 4 to 6 weeks to 1 to 2 days• Productivity improved by 162%• Gross profit improved from 38% to 51%• Machine changeovers went from 3 per week to 20-30 per day• Inventory turns improved from 3 times to 18 times• Customer service improved from 50% to 98%• Sales grew from $100 million to $400 million• Enterprise value increased by 2467% (from $30 million to $770

million

Ref: The Lean Turnaround, Art Byrne


Lean Results in Various Industries

• Robins AFB: C-5 aircraft overhaul– Reduced time from 339 to 160 days– Mechanic travel time reduced by 60%– Freed up one dock for additional workload

• Civil Engineers: Streamlined Air Force design-build process

– Second pass: Reduced flowdays from 1,046 to 599 days (42%)

• Filling Civilian Positions: Streamlined portions of the end-to-end fill process

– Reduced time from 160 to 120 days– AFPC increased serviced population 5,000

positions with no additional manpower

Shingo PrizeOnly DOD Gold-

Level Winner

Shingo PrizeOnly DOD Gold-

Level Winner


Lean Results in Various Industries• Airport Terminal

– Designed CTK/MX Truck—saved

-- 150 man-hrs per mo– Crew bus--saved $3100 + 230 man-hrs pr mo– Eliminated multiple refuels--saved

-- 129-172 man-hrs per month

• TN Wheel Factory: SMED (Quick Changeover)– First Practice Run: Assembly finished before

Paint; 1st Time in 23 Years!– “Impossible” became possible in 1 ½ days.

• Aerospace Ground Equipment– Saved 2.2 days per week with 17 vs 33 people– $35K of equipment removed from process– Walking reduced from 17 miles/wk to 0.5 miles

LubeLook/Quick Fix

FLOW


What to Expect – The Challenges

Expect Resistance from all Levels


We tried that before. Our place is different. That’s not my job. It costs too much. We don’t have the time. Runs up our overhead. Laws and Reg’s say we can’t. That’s not our problem. I don’t like the idea. Good idea but impractical. Not that again. It’s too radical a change.

We did all right without it. Let’s form a committee. It won’t work in our office. It can’t be done. It’s impossible. We’ve always done it this way. Top management won’t buy it. Don’t rock the boat. Quit dreaming. If it isn’t broke... We don’t have the authority. It’s a customer requirement...

Comments You’ll Hear


Year-1 Year-2 Year-3

• Progress may seems slow• 2 steps forward/1 step back (which is okay)

• Major resistance• Implementation errors• Jury still Out• Local areas of great progress

• Change/Improvements, the Norm• Positive Momentum building• People are Engaged

• Still gaining skills• Compounding Improvements • Demonstrating success• Making Great Progress

Performance

Key Measures

Typical Lean Journey


Lean Tips for Success

• Lead the Transformation from the Top- It is a people transformation (cultural change required)

• Build a core team of internal lean professionals

• Focus on People and Processes- The goals (stretch goals) will take care of themselves

• Make it Mandatory


Transformation Pitfalls

• Senior management does not lead the transformation

• Internal lean professionals not supported

• Fear of failure; avoiding any risks

• Believing "hare lean" will beat “tortoise lean”


Initial Lean Transformation Steps

• Vision or Strategy Statement

• Communication Plan

• Roles and Responsibilities / Org Structure

• Tactical Plan

• Developing Internal Lean Capability

• Training Plan

• Annual Reviews


Once Ready…

1. Announce Vision

2. Provide Introductory Lean Training

3. Enterprise Wide Value Stream Analysis

4. Kaizen Events


Final Thoughts

• Announce in advance that no one will lose their job because of Lean; Reduce any headcounts before implementing Lean (if applicable)

• Along with the vision there will need to be a burning platform

• Run 1-2 events each month for 3-5 years in each facility as appropriate

• Lean is a journey versus a destination; a marriage versus a dating


I. Lean Transformation

II. Targeted Improvements

III. Onsite Workshops – Lean Green Belt Course (4-days)– Root Cause Analysis (1-2 days)– A3 Management (1-day)– 5S + Visual Management (1-day)– Single Minute Exchange of Dies (SMED), Quick

Changeover (2-days)

IV. Certification Programs– Green Belt Certification– Black Belt Certification

Services


Questions?
