SME Toronto - sme-tbm.org · employment, and so forth. We have a lot of work to do to change this negative image. Just talking about TBM, telling the real story, and showing what

6/24/2013

1

SME Toronto WWW.SMETORONTO.CA

Nigel SouthwaySME Chair 2012/2013

About SME:

The Society of Manufacturing Engineers

Premier source for manufacturing knowledge, education and networking.

Connecting manufacturing practitioners together.

Provide Tradeshow , Expo and network events.

Reviews latest manufacturing technologies/processes/techniques/practices.

SME world-wide supported network of Chapters and technical communities.

Many programs, events, magazines, publications, huge technical database and online training ….

SME leader in manufacturing workforce Education/training/skill development.

SME is a LEAN Business Certification Authority.

www.sme.org.

MEET KNOW GROW

WWW.SMETORONTO.CA $125 per Year

http://www.smetoronto.ca/

http://www.sme.org/

http://www.sme.org/

6/24/2013

2

TBMTake Back Manufacturing

www.SME-TBM.org

A Forum Dedicated to Restoring

our Manufacturing Sectors.

TBMTake Back Manufacturing

A Forum Dedicated to Restoring

our Manufacturing Sectors.

A HUGE CHALLENGE!!!

http://www.sme-tbm.org/

6/24/2013

3

TBM…Our Ultimate Goal

5

Work together ….

Government, Education organizations Industry leaders

ROADMAP……..Recover our future industrial capability …… and therefore our future prosperity.

CANADA MANUFACTURING

6

6/24/2013

4

7

The future of manufacturing

in

Ontario’s economy.

Nigel Southway SME Chair 2012

PEO? TBM

A NORTH AMERICAN PROBLEM

Moved Off-shore…..

8

Textiles

Furniture

Footwear

ElectronicsAUTO PARTS

Appliances

Plastic goods

Equipment metalworkFittings Foods

Un-controlled trade….. “herd behavior”

For low cost labor rates

15% Reduction in Manufacturing Intensity in the last decade

6/24/2013

5

Yet ….we have a skill shortage!!! (NOT a labor shortage)9

2009 2010 2011

CANADA

More than 500,000 jobs lost in last 6 years

25% Reduction(Both in Quantity and Quality)

We have created an Over-educated / Under-trained /Redundant Workforce!!!

1,000,000 Young Canadians

Now out of work!!

Redeployed to part time

and lower paying service jobsOnly 25000 jobs added in Resource Sector

CMTS Toronto Canada October 2011 FABTEC Toronto Canada March 2012 MMTS Montreal Canada May 2012SME Annual Conference Cleveland USA June 2012Many other Society and Association events in 2012/2013

Presentations.... TAKE BACK MANUFACTURING

M

Raising the Awareness

6/24/2013

6

CIM: What factors are driving manufacturers'

decisions to bring production back to Canada?

Southway: It's a North American-wide realization that

off shoring is getting more expensive with increased

transportation expense due to oil costs, as well as

labor price escalation in emerging economies. Many

corporations and large consulting groups also recognize

that there are many hidden costs and issues in supporting

a remote supply chain. In general, local manufacturing is

now considered to be no more expensive than offshore

production. The landed cost tipping point in some sectors

and commodities is projected to be reached by 2015.

Local manufacturing also offers more stability and the

ability to innovate at home more effectively. And, being

closer to the customer has added inventory and flexibility

advantages.

CIM: How can industry members communicate the

importance and value of manufacturing to the

general population?

Southway: We have had three decades of people thinking

manufacturing is bad news. Manufacturing has been

viewed as dirty and dangerous, risky and unstable

employment, and so forth. We have a lot of work to do to

change this negative image. Just talking about TBM, telling

the real story, and showing what we do will help.

If we look at the long term, today's 12- to 15-year-olds will

lead the way. When they reach 22 years old, we will have a

thriving localized manufacturing economy. It certainly won't

be based on cheap oil or energy, but it will be very lean

and very green. Things will be made in local manufacturing

hubs or clusters. Factories will be very high-tech and their

operation will demand high levels of skill and education.

All this needs vision and a can-do attitude. Not having both

of these is our biggest risk.Take Back Manufacturing

12

Take Back Manufacturing on TVO The Agenda

Marie Laird … Past Chair SME Toronto

6/24/2013

7

13

Take Back Manufacturingwww.SME-TBM.org

FOR OUR KIDS!!!

Let’s Re-engineer Our Economy to Work Again!

TBM

TBM

North-American Manufacturing

Prosperity for all.

Industry

TBM – The 3 Parallel Imperatives

Educators

Government

M

http://www.therrrink.com/images/yhockey/YouthHockey.jpg

http://www.therrrink.com/images/yhockey/YouthHockey.jpg

6/24/2013

8

TBM


Prosperity for all.

Industry


Educators

Government

M

TBM

Government


M

• Provide MORE support for Manufacturing• Embrace Waste-Free Forms of Globalization• Focused POLICY and PLANS to better balance trade• Avoid duplicated policy and support organizations

6/24/2013

9

TBM


Prosperity for all.


Educators

We have created an Over-educated / Under-trained /Redundant Workforce!!!

• Education must better serve its citizens• Ensure it is value adding to the economy• Re-Balance Education versus Training• Integrated Industrial Apprenticeship System

• Integrated Career Pathway

ApprenticeJourneyperson

TechnicianTechnologist

Engineer

• Industry Recognized Skills and Education Development Progression

• Apprenticeship Pool From The Best, the Brightest And The Most Talented

• Become The Learning/Occupation Destination Of Choice for High School Students

• Apprenticeship Courses Transferrable And Articulated To Other Post Secondary Colleges And Universities, Supporting Lifelong Progression In Learning As Shown In Career Pathway Above

• Industry must lead on driving and installing this system. ( So..can’t complain about skill shortage!!)

• The Integrated education and training must provide a highly flexible workforce.

• DO IT!...... Before we loose the Industrial Experience of the Baby Boomers!!

Trade

Technician

Technologist

Engineer Eng Degree

Eng Diploma

Tech Certificate

Trade Certified

High school

Manufacturing

needs YOU !

VISION ..Re-focus on New Apprenticeship System

6/24/2013

10

TBM


Educators

Industry • Reinstall a “MINDSET” for Continuous Improvement

• Gain a Vision & Aptitude for all forms of “INNOVATION”

• Use BALANCED SOURCING…. Run the numbers!!

• Install New Technology and Capital Re-investment

• Re-build Strong LOCALIZED Manufacturing Communities

(Incubators/clusters)


Prosperity for all.

Manufacturing has an IMAGE problem!!

Most manufacturing-based businesses are beyond dispirited….

Our Politicians/Government/Population have little understanding of business

and manufacturing…We must EDUCATE them!!

Manufacturing is deemed:

Dark, Dirty, Dangerous, Deafening and Difficult….

20

….. And Smelly!

M

And….

Highly unstable as a career!?

6/24/2013

11

21

TBM

EXCITE the NEXT GENERATION

Change ….

The Image of Manufacturing

Let’s Make Manufacturing

www.SME-TBM.org

TBM SURVEY

THEN PUSH HERE

Do You Care

About Manufacturing

in CANADA??

TBM Self Positioning Survey

GET THE FREE TBM ROADMAP TOOLKIT

6/24/2013

12

TBM Self Positioning Survey

Help us to Help you!

PO

LIC

Y

ED

UC

AT

ION

Ind

ustr

y

Excell

en

ce

TBM

TBM

TBM Survey Results

Presented at the SME TORONTO Monthly Meeting 22nd Nov 2012

From an ongoing online survey on the www.sme-tbm.org website

6/24/2013

13

TBM Survey Summary (Ontario)72% Are small businesses (with less than 100 people)

45% Are in facilities less than 20,000 sq. ft.

50 % Are in Automotive/Equipment/Furniture/Electronics/Plastics sectors

50% Have 80% of sales in Canada

87% Are concerned about being competitive

82% Are very concerned about the health of their manufacturing sector

73% Are very concerned about the high Canadian dollar

68% Need help with productivity improvement

65% Suggest we need to focus on workforce training and development

60% Identified LEAN as an improvement strategy to follow

47% Are interested in improving their system for Innovation and product launch

TBM Survey Summary (Ontario)72% Are small businesses (with less than 100 people)

45% Are in facilities less than 20,000 sq. ft.

50 % Are in Automotive/Equipment/Furniture/Electronics/Plastics sectors

50% Have 80% of sales in Canada

87% Are concerned about being competitive

82% Are very concerned about the health of their manufacturing sector

73% Are very concerned about the high Canadian dollar

68% Need help with productivity improvement

65% Suggest we need to focus on workforce training and development

60% Identified LEAN as an improvement strategy to follow

47% Are interested in improving their system for Innovation and product launch

6/24/2013

14

SME Positional Survey

Business Process Improvement / LEAN

Strategic planning / Innovation

New Product Introduction & Rapid Prototyping

Balanced Sourcing

Production Process Excellence / Supply Partnering

Distribution and Inventory management

Manufacturing Technology Toolkits

Business Systems & Computer Integrated Manufacturing

Management technique upgrades

Organizational learning systems / Apprenticeship program

The TBM Evolution Plan

27

Lets get organized…..





Balanced Sourcing








28

Lets get organized…..

LEAN & Continuous Improvement

Improved Agility to customersReduce cost of poor qualitySuperior customer service

Reduce dependency on inventoryMaintain the competitive edge

Improve employee and shareholder commitment

6/24/2013

15





Balanced Sourcing








29

Lets get organized…..LEAN & Continuous Improvement

Join SME!... Participate!!Tradeshows/Chapters/Technical communities

Participate in the Lean certification journey across the whole business (SME/AME/ASQ)

Implement and certify your organization in LEAN

Benchmark yourself against the best in class.

Ensure you have a strong Continuous Improvement Evolution plan

LEAN-ing Toward Success

A Take Back Manufacturing Imperative

6/24/2013

16

6/24/2013

17

NIGEL SOUTHWAY

• 40 years Broad Business and Manufacturing Experience

• Rough post-war Sea-Port (Bristol ….South-West England)

• Posh name/Specs…Stress/had to grow up tough

• Product of the British Swinging 60’s !!!!!

• British Engineering Apprentice…Aerospace/Electronics (1966-1972)

• BSc EEE C-Eng. in Engineering/MSc Management … Manufacturing Eng (1972)

• MOTOROLA Director MFG Eng / Cycle-Time/Six-Sigma Implementation (1980’s)

• Change Agent/Educator/Coach/Advisor for LEAN business improvement (1990)

• Consulted many organizations in different industry sectors worldwide.

• Have assisted many Global Sourcing programs and Joint Ventures

• Society of Manufacturing Engineers …2012/2013 Chair Toronto Chapter

• Co-Leader of the Canadian wide Take Back Manufacturing (TBM) initiative

(Globalized Manufacturing will remain a significant challenge!!)

• Strong Coach to Vision and Plan a LEAN and Balanced Source Evolution !www.nigelsouthway

Owner of NEXUS CONSULTING SERVICE

AUTHOR : CYCLE TIME MANAGEMENT

…… Fast Track to Productivity Improvement

1992

Oakville Ontario Canada

NEXUS

INDUSTRY WEEK

http://www.nigelsouthway.com/

6/24/2013

18

Business Productivity Consulting Since 1989

Automotive, Aerospace, Avionics,

High-tech and consumer Electronics,

Pharmaceuticals, Food, Beverage.

Consumer Products and Appliances

Steel, Fabrication and Mining

Service and Financial Industries.

Ever-Ready Battery,

J.M. Schneider Inc,

Procter and Gamble,

Inland Steel,

Morton Metal-craft,

Inter-City Products,

FABCO,

Thompson Pipe & Steel.

ECCO,

A 0 Smith,

Grote Industries,

NBS,

Royal Canadian Mint,

• Business Excellence Visioning / Coaching.

• Business Productivity Improvement Programs.

• Changing the Operating Practices for Success.

• Global Sourcing and Joint Venturing.

• Project Management of New Products and Processes.

BFL,

British Airways,

BTR,

Tectrol,

Tiercon,

ACS,

Imperial Rubber,

GTD,

VERTIGO,

Canadian Pools,

Telephoto

SXA

Clients in Canada, USA, Asia and Europe.

www.nigelsouthway NEXUS

GlaxoSmithKline.

Baxter,

Ciba Corning,

Citibank,

Royal Ford,

GE MARCONI,

Clubcar

Toro

John Deere

NOMA,

McCoy

Polaris

Clients where I have applied CYCLE TIME Reduction (LEAN THINKING)

• Electronic assembly• Meat processing plant..• Metal fabrications• HVAC Manufacturing• Toothpaste manufacturing• Steel mill processes• Bank check clearing house• US army medical Corp• Whiskey distilling• Dry-cell battery production• Credit card emboss house• Electrical products• Custom Power-Supplies• Computer design/manufacture• Sheet-metal fabricators• Plastic injection molding• Truck Components supplier• Construction equipment

• Oil industry equipment providers• Aerospace equipment providers• Soap factory• Bubblegum and candy factory• Food additive producer• Data-com system provider• Computer software developer• Mint (Coins and Medals) • Security equipment• Off-road equipment• Water pipeline manufacturer• Exhaust System Manufacturing• Commercial swimming pool manufacturing• Auto dealerships• Medical equipment Design/Manufacturer• Oil extraction equipment manufactures• Nano-tech Battery Manufacturing• Automotive parts supplier

NEXUS

http://www.nigelsouthway/

6/24/2013

19

Continuous Improvement

Evolution planning

&

Lean/Cycle-time Concepts

The Past and the Future …. Any Business

?NEXUS

The Challenge ???……………..

6/24/2013

20

The Future …. Any Business

• Margin Pressure

• Shorter lead-times

• Need for agility

• More global competition

The Problem The Solution





The leaders and survivors will have a strong integrated CI Culture

5S

One Evolution Plan

NEXUS

Continuous

Improvement

THE GOAL

6/24/2013

21

The Threat/Change Pressure Curve

Electronics, (Motorola/HP etc)

High-tech,

Automotive,

Consumer Products and Appliances, (GE)

Steel,

Aerospace, Avionics,

Service and Food,

Beverage.

Fabrication,

Mining / Extraction,

Pharmaceuticals,

Financial Industries.

1980 20201990 2000 2010

NEXUS

Question For You (Every-one)?

• Are you ready?

• Do you have enough knowledge of concepts?

• Do you understand the process/tools being used?

• Do you have enough Vision?

• Do you understand your role?

• Do you have an Implemantatyion plan

?

NEXUS

6/24/2013

22

Are you satisfied with your profitability? Yes No

Do you have a detailed plan to increase your profit margin? Yes No

Do you know (in detail) where the bottlenecks and waste factors are in your business that effect productivity and profit? Yes No

Do you have a clear vision of what to do to get those improvements? Yes No

Do you have an Evolution plan and detailed project activities for your business improvements? Yes No

Do you have a system to measure the improvements? Yes No

Does a clear vision for improvement and toolkits to make them happen exist at all levels in your organization? Yes No

Do you have a key person dedicated and assigned to make such improvements happen? Yes No

Is your organization physically arranged and culturally positioned to eliminate waste? Yes No

Have you fully assessed the effectiveness of your operating practices to support/sustain the changes needed? Yes No

Do you have a formal global sourcing strategy and plan? Yes No

Do you have effective project management of all new products and associated processes? Yes No

Continuous Improvement Quiz?

NEXUS

Need to improve ??? Which

Improvement

Technology ?

?Lets get

organized!!!!

6/24/2013

23

NEXUS

“ It’s become a bit denatured”

Still the best choice

The 1980s was a Renaissance period for Manufacturing and Engineering

Many believe this was created by the Space Race!!!

Others believe it was due to the next generation of younger management

NEXUS

The Birth Of LEAN

6/24/2013

24

BUSINESS SYSTEMS

MRP (Materials Resource planning)

CIM

Pull systems

MRP 2 (Manufacturing Resource Planning)

ERP (Enterprise Requirements Planning

MANUFACTURING

JIT

QDC

SPC

Theory of constraints(The GOAL)

Cycle Time Management

Kaizan

TPM

Problem Solving/8D/5Y

DOE (Design Of Experiments)

LEAN THINKING

NEW PRODUCT INTRODUCTION

Product teams

Simultaneous engineering

Phase Review process

DFM

Six Sigma

(Motorola) QS9000/APQP

Problem solving 8D /5Y /4 phase etc

CULTURE CHANGE

TOYOTA PRODUCTION SYSTEM Visual factory /5S

Participative management style

Teamwork power

People Empowerment

Pay for skills/Gain sharing

SUPPLY

Supplier management/partnering

MEASUREMENTS

Value Engineering ABC

(Activity based Costing)

Pyramid/Balanced Scorecard

1970 19951980 1985 1990

W E Deming

NEXUS

The father of Quality Management

The Birth Of LEAN• The JIT threat… “Made in Japan” Early 80s… TPS etc

• The GOAL… 1984 Goldratt

• TOTAL CYCLE TIME 1985 Phil Thomas

• World Class Manufacturing 1986 Schonberger

• Time.. A Competitive Advantage 1990 George Stalk BCG

• Measure-Up (Performance Measurement Score-carding) 1990 Lynch and Cross

• Cycle Time Management 1993 Northey/Southway

• Lean thinking 1996 Womak/Jones

Now!!!

• Many LEAN Educational packages…….

• LEAN/Six Sigma Certification programs……

• SME LEAN Benchmarking Workshop series…….

Reading list

• NEXUS Information Package www.nigelsouthway.com/positionalpapers

http://ca.search.yahoo.com/r/_ylt=A0geu8aVIpRPjGkAlsHrFAx.;_ylu=X3oDMTA0cWtjOThtBHNtAzE-/SIG=13882cak8/EXP=1335137045/**http:/www.amazon.com/Cycle-Time-Management-Productivity-Manufacturing/dp/1563270153

http://www.nigelsouthway.com/positionalpapers

6/24/2013

25

NEXUS

Clear visioning and self awareness at all times!!

Make improvements happen from within the organization!

CYCLE-TIME MANAGEMENT

LEAN- THINKING NEXUS

6/24/2013

26

NEXUS

Cycle-Time

Finding that lever for change and improvement!

A LEAN MEASUREMENT

Start thinking in the 4th Dimension!!

What is Total Business

Cycle Time?

“Total Cycle Time” is the actual time elapsed from when a

customer expresses a need for that product or service until the

time the customer's need is satisfied and payment is received.

NEXUS

Cycle-Time

6/24/2013

27

A CYCLETIME REDUCTION EXAMPLE!!!

• How long does it take you to change a wheel on your Car????

• 15 minutes?? or even longer??..to do the following essential activities….

Stop car…..raise car…..remove nuts….replace new wheel…..tighten nuts…..lower car…..Go…

NEXUS

•AN INDY PIT CREW DOES THE SAME PROCESS IN …..…….LESS THAN 10 SECONDS!!!!!!

NEXUS

The things in daily life that are LEAN….

Eyeglasses…. 1 hour!!!...Paint colors…. Mixed in storePizza delivery…. 1 hour and sometimes freeVideo conferencing…. NOT business travelNon coin tolls on highwayBritish Round- A-BoutsPay for gas at pumpCell phonesInternet bankingSelf serve/checkout storesInternet moviesCar Rental (some)Internet shopping?www information

Fast

service

is

good

service!!!!

NEXUS

NOT Lean

Global Supply Chains

Legal system

Government policy making

Voting system

Heath care systems

Educational system

HEALTH System

Business commute time

Airport check in/baggage handling

Security at airports

Hotel check-in

ALL CAN TAKE TOO LONG!!

6/24/2013

28

NEXUS

NEXUS

6/24/2013

29

WaitingInventoryExcess TransportationOver-productionDefectsOver-processingExcess MotionUnder-utilized Talent

8 Types of Waste

NEXUS

NEXUS

6/24/2013

30

Discovery

Invention

Research

Development

Launch

Commercialization

INNOVATION


$$$$

Marketers Researchers Product Teams Production/Distribution

Happy

Customer

Academia

A Typical business process???

Inventors

NEXUS

Discovery

Invention

Research

Development

Launch

Commercialization

INNOVATION


$$$$

MarketersResearchers

Product TeamsProduction/Distribution

Happy

Customer

Academia


Inventors

White Spaces

The time delay between major functions,

where less than effective communication

linkage can occur, which affects the

interaction required between these functions

or departments to complete the essential tasks

of the business.

6/24/2013

31

WASTE

DEFECTS

SETUPS

Short ships

Labor VarianceShortages

Overtime

Scrap

DelaysBatch failures

NEXUS

• “In any business big or small and whatever the type of products or services as much as 90% waste or non value adding cost can exist in some of the activities within the business”

• Waste effects the 3 big success factors:

– Quality – Delivery – Cost.

• Remove waste, put cash on the bottom line.

NEXUS

Attack WASTE

WILL REQUIRE STRONG VISIONING AND PARADIGM SHIFTING

6/24/2013

32

Continuous Improvement Environment

ENTITLEMENT BASELINE

Cycle Time

Improvement

Quality Improvement

Cost Reduction

NEXUS

Vision/Commitment

CTM

LEAN

Waste reduction

6 Sigma

TPM

Change-over

Reduction

5S

Point Meetings

COPQ

NEXUS

CYCLE TIME REDUCTION TOOLS

6/24/2013

33

BASELINE

NEXUS

NEXUS

6/24/2013

34

NEXUS

The LEAN Version (Entitlement)

NEXUS

With LEAN but low capital

6/24/2013

35


NEXUS


THEN….


The LEAN Version (Benchmark)

NEXUS


Add Capital and Technology

THEN….

6/24/2013

36


The LEAN Version (Benchmark)

Note:Baseline..Where you are now!

Entitlement… with Lean but low capitalBenchmark… Capital and Technology NEXUS


Add Capital and Technology

THEN….

Measurement of Performance

Entitlement

Baseline

Benchmark

Baseline: Current performance

Entitlement: Level of performance achieved with present resources & capital

Benchmark: Best competitive performance with added resources and technology

NEXUS

6/24/2013

37

Benchmarking

• Review with Measurements who is “best in class”

– In your industry

– In any industry with similar process or conditions.

• Study why they are better and try to apply to your own business.

NEXUS

Copy/Steal/Cheat/Beat the Competition!!

NEXUS

The Cost Time Profile

6/24/2013

38

NEXUS

COST TIME PROFILE

COST

$$$ CASH $$$

WORKING CAPITAL

TIME

NEXUS

6/24/2013

39

NEXUS

Reduced

Cost

Improved Agility

Imagine the Vision

• Cycle time inside customer expectations

• Faster time to market capability

• Minimal Inventory and carry costs and waste in all forms

• Perfect or Improved quality (Product /Process/Services)

• Total Cost performance excellence

• Greater productivity and increased gross margins

• Reduced working capital

• Increased cash-flow cycle & reduced need for credit

• Employee Participative and Empowerment culture

• A distinct competitive edge.

NEXUS

The Perfect Business Process

6/24/2013

40

NEXUS

INSANITY

“Doing the same things…. and expecting better results!”

Definition:

Comments that can make you go insane!!!!

60. We have always done it this way!NEXUS

6/24/2013

41

81

VISION/Commitment

Formal Continuous Improvement System

Concepts for Improvement

Change Structure/Process/Culture

Facilitation Education

EVOLUTION PLAN

5 loop Scope of change

3 TIERS of change

SCORECARDPerformance Measures

Programs/Projects/Change teams

Mobilization of whole workforce

Six Sigma?

CTM?/LEAN?

TPM/TPS/5S?

?????

BenchmarkingResults/savings

EmpowermentEngagement

NEXUS

“Total Cycle Time” …The actual time elapsed from when a customer

expresses a need for that product or service, until the time the

customer's need is satisfied, and payment is received.

Strategic Business Development Loop

New Product Introduction (NPI) Loop

Supply Management loop

Make/Ship Loop

Distribution Loop

The 5 Cycle Time Loops in any Business

Customer Expectation (Existing Products)

Customer Expectation (New Products)

www.nigelsouthway.com/positionalpapers


6/24/2013

42

NEXUS





Make/Ship Loop

Distribution Loop



5 Business Loops

• Who is the customer?

• Must think holistically !

• From Vertical to Horizontal thinking

• Use the 5 Loops to provide focus




(The internal customer concept)

BUT……..THIS IS A MUCH MORE EXACTING & STRESSFULCONCEPT THAN JUST MEETING OUR OWN GOALS

Supplier/Customer Relationship We are all suppliers and customers.

The relationship must be based on mutual trust and respect.

NEXUS

6/24/2013

43

NEXUS








Make/Ship Loop

Distribution Loop






• The 5 Loops in the business


5 Business Loops

NEXUS








Make/Ship Loop

Distribution Loop



5 Business Loops

3TIERS

6/24/2013

44

NEXUS








Make/Ship Loop

Distribution Loop



5 Business Loops

3TIERSSTRATEGY

IMPROVEMENT

PRACTICES

1

2

3

3 TIER APPROACH TO CHANGE

TIER 1 Strategic process change

TIER 2 Change/Improvements

TIER 3 Operating Practice Changes

NEXUSwww.nigelsouthway.com/positionalpapers


6/24/2013

45

OPERATING PRACTICE CHANGESPoint Meetings/Communication Problem solve/project identification Cross-train/morale.

PROCESS IMPROVEMENTSReliability (TPM, SPC, etc,)Flexibility (Changeover, multi-skill, etc. Capability (waste reduction)

Strategic Process ChangesPull system design (LINEAR PROCESS)Capacity/Demand planning (DEMAND)Physical layout (ORGANIZATION)

TIER 1

TIER 3

TIER 2 STRATEGY

IMPROVEMENT

PRACTICES

1

2

3

LEAN BUSINESS ENVIRONMENT

NEXUSCAN BE APPLIED TO ANY DEPARTMENT OR PROCESS



Strategic Process ChangesPull system design (LINEAR PROCESS)Capacity/demand planning (DEMAND)Physical layout (ORGANIZATION)

TIER 1

TIER 3

TIER 2 STRATEGY

IMPROVEMENT

PRACTICES

1

2

3


NEXUS

6/24/2013

46

NEXUS

TIER 1 ……Thinking/Visioning

• DEMAND Planning/Forecasting Capacity– Effectiveness and functionality

• LINEAR Operational PROCESS– Process simplification and automation toward linear flow

– Business systems Integration and sustainability

• Physical layout / ORGANIZATION….. – Physical Layout and facility planning…..

– Ongoing restructuring/Resource and skill planning

Improvements in 3 connected areas ….

6/24/2013

47

Linear Flow• Utilize a perfect business process (as much as possible)

• Adopt an appropriate business process strategy

• Linking all parts of the business process

• Reduce Business cycle-time FAR inside customer demand

• Only produce to “real” customer demand (sell true capacity)

NEXUS

VALUE ADDED

VALUE ADDED

VALUE ADDED

VALUE ADDED

Customer

Real Demand Lead time

Process Cycle time

Example

Inv InvInv Inv

No Agility!

Linearity below 1

Linear Flow• Utilize a perfect business process (as much as possible)

• Adopt an appropriate business process strategy

• Linking all parts of the business process

• Reduce Business cycle-time FAR inside customer demand

• Only produce to “real” customer demand (sell true capacity)

NEXUS

VALUE ADDED

VALUE ADDED

VALUE ADDED

VALUE ADDED

Customer

Real Demand Lead time

Process Cycle time

Example

Build to order

(Sell Capacity)

Total Agility!

Linearity 1 or better

6/24/2013

48

BUSINESS/FACILITY LAYOUT & ORGANIZATION

Product Travel Distance: 2500 feet to 1000 feet

# Transactions: 80 to 35

Total Process Steps: 60 to 30

BEFORE AFTER




TIER 1

TIER 3

TIER 2 STRATEGY

IMPROVEMENT

PRACTICES

1

2

3


NEXUS

6/24/2013

49

Typical Process Step

(Performance Model)

Repair Rework

Non-Utilization (Wait) Time

Changeover/Time

Preventative Maintenance PM

Breakdown (Equipment/Process)

Flexibility

Reliability

Capability

Internal

Customer/s

Cycle Time

100%

Capacity

Internal

Supplier/s

Capacity

0%

Scrap Rejects

NEXUS

Value-Added Process TimeCan be only 10% of Total Capacity!!!




TIER 1

TIER 3

TIER 2 STRATEGY

IMPROVEMENT

PRACTICES

1

2

3


NEXUS

6/24/2013

50

POINT MEETINGS…….. TIER 3 core tool

NEXUS

NEXUS

POINTCOMMUNICATION TIER 3

6/24/2013

51

NEXUSA book by Michel Greif

Boss

NEXUS

6/24/2013

52



Strategic Process ChangesPull system design (LINEAR PROCESS)Capacity/Demand planning (DEMAND)Physical layout (ORGANIZATION)

TIER 1

TIER 3

TIER 2 STRATEGY

IMPROVEMENT

PRACTICES

1

2

3


NEXUSCAN BE APPLIED TO ANY DEPARTMENT OR PROCESS

NEXUS








Make/Ship Loop

Distribution Loop



5 Business Loops

3TIERSSTRATEGY

IMPROVEMENT

PRACTICES

1

2

3

6/24/2013

53

NEXUS








Make/Ship Loop

Distribution Loop








5 Business Loops

SUPPLY

STRATEGY

NEXUS

6/24/2013

54

Ongoing…..

NEXUS

Supplier Certification

Supplier Partnering

(single source)

Supply base Rationalization

??????

GLOBALIZED

MANUFACTURING

? ?TBM Positional Paper on the Waste in a Global Supply Chain

6/24/2013

55

109

Waste of VERY Expensive Bunker Fuel

Much Non-Value-Adding Inventory

PURE WASTE

110

Waste of VERY Expensive Bunker Fuel

This low grade bunker fuel is used by the worlds 90,000 cargo ships

A single large container ship emits pollutants equivalent to 50 million cars.

Total container ship pollution is 6 times that of the TOTAL cars in world

2,000 times the amount of sulfur compared to diesel automobiles.

Container ships account for 90% of global trade by volume.

Our Economies will be jeopardized by this global warming enabler

VERY LARGE CARBON FOOTPRINT

6/24/2013

56

111

Numeric data is available, click here for information.

Crude Oil Prices in USDs

Start of Globalization

Globalization breakeven point

Note: localized supply of energy will not change this outlook

We will not run out of Oil…

but ….

We will run out of Oil

we can afford to burn!!

The end of cheap China

What do soaring Chinese wages mean for global manufacturing?Mar 10th 2012 | HONG KONG AND SHENZHEN | from the print edition

CHINA … Low Cost Country?

WEALTH TRANSFER???

http://www.oilnergy.com/datanumb.htm

6/24/2013

57

GLOBALIZED

MANUFACTURING

? ?START THINKING LEAN & GREEN

?We built Cost Trade-off Models … LOCAL versus Off-shore

LO

CA

L

BE

ST

OF

F-S

HO

RE

WO

RS

T O

FF

-SH

OR

E

?

Boston Consulting Group (BCG)……

Predict BALANCED LANDED COST parity by 2015 in most sectors

Due to exchange, tariffs, Transportation, wage inflation, other hidden drivers….

The REAL Costs to Manufacture OFF-SHORE will continue to rise.

OFFSHORE LOCAL

BALANCED SOURCING

6/24/2013

58

What is happening in the USA?

• Resurgence of Manufacturing in USA … Now at “tipping point”

via

lower US exchange rate ……………………………...

Rethinking of globalized supply

Balanced Sourcing Cost trade-off modeling

Re-shoring !!!

BOSTON CONSULTING GROUP STUDY ..April 20, 2012

More Than a Third of Large Manufacturers Are Considering Reshoring from China to the U.S.

BCG Survey Confirms That Rising Chinese Wages, Logistics, and Other Factors Are Prompting

Companies to Rethink Where They Manufacture……

What is happening in the USA?

• Resurgence of Manufacturing in USA … Now at “tipping point”

via

lower US exchange rate ……………………………...

Rethinking of globalized supply

Balanced Sourcing Cost trade-off modeling

Re-shoring !!!

Reasons..

Transportation costs

Labor costs

Product quality

Customer location

Ease of doing business

6/24/2013

59

Ongoing…..

NEXUS

Supplier Certification

Supplier Partnering

(single source)

Supply base Rationalization

Close to point of Use / Customer

NEXUS








Make/Ship Loop

Distribution Loop








5 Business Loops

6/24/2013

60

NPINEXUS

Ideas to Launch process…

N…P….INew

Product

Introduction

6/24/2013

61

Discovery

Invention

Research

Development

Launch

Commercialization

INNOVATION


$$$$

Academia


NPIAny Change in:

Fit

Form

Function

Process

Procedure

6/24/2013

62

NEXUS

6/24/2013

63

DFMDESIGN FOR MANUFACTURABILITY

NEXUS

6/24/2013

64

IMPLEMENTATION

NEXUS

128

VISION/Commitment

Formal Continuous Improvement System

Concepts for Improvement

Change Structure/Process/Culture

Facilitation Education

EVOLUTION PLAN

5 loop Scope of change

3 TIERS of change

SCORECARDPerformance Measures

Programs/Projects/Change teams

Mobilization of whole workforce

Six Sigma?

CTM?/LEAN?

TPM/TPS/5S?

?????

BenchmarkingResults/savings

EmpowermentEngagement

6/24/2013

65

PlanningForum

Management Team

(Approval Team)

Evolution Review Teams

Evolution Plan

Communication Evolution Plan

Planning Execution

Proj

Ldr

Prog

Ldr

Prog

Ldr

Prog

Ldr

Proj

Ldr

Proj

LdrProj

LdrProj

Ldr

Proj

LdrProj

Ldr

Proj

Ldr

12 Step Implementation Process

Step 2

Step 3/4/5

Step 1

Step 7

Step 12+

Plan Approval

Step 6

Team members

Tasks

Step 10/11

Step 9

Team Structure

NEXUS

Step 1 Approval Team kick-off

Step 2 Planning Forum

Step 3 Review team Kick-off

Step 4 Review team planning

Step 5 Formalize Evolution Plan

Step 6 Management Approval

Step 7 Communicate Evolution Plan

Step 8 Program kick-offs

Step 9 Project kick-offs

Step 10 Project Approval

Step 11 Monthly Review

Step 12 Quarterly Communication


Planning Execution

To Support an Evolution Plan for Continuous Improvement

NEXUS

6/24/2013

66

Management Team

(Approval Team)

Evolution Plan

Execution

Proj

Ldr

Prog

Ldr

Proj

Ldr

Proj

Ldr


Step12Ongoing

Communication

Program

Kick-off

Project Activated

Project

Kick-offSet project

goals

Project

Organiza

tion

Feasibility

PhasePlanning

Phase

Implement

PhaseFollow-up

Phase

Audit

Report

Audit

Audit

Team

Evolution Review

(Monthly)

Project ApprovaIMeeting

Step 10

Step 11

INACTIVE COMPLETEACTIVE

Step 8 Step 9

Projects status can be INACTIVE / ACTIVE / ON HOLD / COMPLETE

Steps 8 to 12

NEXUS

SME Toronto - sme-tbm.org · employment, and so forth. We have a lot of work to do to change this negative image. Just talking about TBM, telling the real story, and showing what

Documents