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The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseWhy Change ?
Lean Foundations
Continuous Improvement Training
Lean Foundations
Continuous Improvement Training
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The purpose of the Key Concepts module is to recognize a need to change.
PurposePurposePurposePurpose
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The purpose of the Key Concepts module is to recognize a need to change.
Also, to allow you to become familiar with some of the basic principles of Lean and basic improvement
methods behind Process Analysis.
PurposePurposePurposePurpose
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The purpose of the Key Concepts module is to recognize a need to change.
Process Analysis is the foundation Process Analysis is the foundation toward achieving Process Excellence.toward achieving Process Excellence.
Also, to allow you to become familiar with some of the basic principles of Lean and basic improvement
methods behind Process Analysis.
PurposePurposePurposePurpose
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History of ManufacturingHistory of ManufacturingHistory of ManufacturingHistory of Manufacturing
Made to customer spec Single piece mfg… each product unique Variable quality Little inventory High cost … made for the rich
CraftCraftCraftCraft
Interchangeable parts – Whitney Division of labor – Taylor Assembly lines – Ford Labor strife
Mass ProductionMass ProductionMass ProductionMass Production
High variety Small batch sizes PPM quality Engaged workforce
The “Lean” EnterpriseThe “Lean” EnterpriseThe “Lean” EnterpriseThe “Lean” Enterprise
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Why Change ?Why Change ?Why Change ?Why Change ?
A need for change is usually characterized by:
– Quality is a “Q.A.” department responsibility
– Large production lots
– Large centralized stores
– Customer dissatisfaction
– Enormous part and process variation
– Set-up measured in hours instead of minutes
– Order entry times measured other than in minutes
– Product margins eroded by increasing operating costs
– Ever-increasing competitive pressures
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Why Change ?Why Change ?Why Change ?Why Change ?
Need for change is a STRATEGIC ISSUE which any
and every Manufacturer must address:
– Quality - How to improve it
– Cost - How to control it
– On-time Delivery - How to ensure it
Failure to improve in all three areas means a loss of competitiveness in today’s global marketplace.
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Why Change ?Why Change ?Why Change ?Why Change ?
“Lean Linking”
is …
Forward Thinking !
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Why Change ?Why Change ?Why Change ?Why Change ?
“Lean Linking”
is …
Forward Thinking ! xx
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Evolutionary vs. Revolutionary ChangeEvolutionary vs. Revolutionary Change Evolutionary vs. Revolutionary ChangeEvolutionary vs. Revolutionary Change
Having a forward looking perspective on continuous
improvement is a requirement of the competitive
marketplace and is the first step in becoming world-
class.
DO NOT set incremental improvement
goals over previous performance, rather -
Think of where we need to be:
- Continually declining costs
- Zero defects
- Minimal inventories
- Fully satisfied customers
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What can we expect with Lean Thinking? What can we expect with Lean Thinking? (over 5 years)(over 5 years)What can we expect with Lean Thinking? What can we expect with Lean Thinking? (over 5 years)(over 5 years)
Defects reduced by 20% per year
Delivery Lead Times reduced by more than 75%
On Time Delivery improved to 99+%
Productivity (sales per employee) increases of
15-25% per year
Inventory (working capital) reductions of more than
75%
Return on Assets improvement of 100%+
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Analyzing and Improving ProcessesAnalyzing and Improving ProcessesAnalyzing and Improving ProcessesAnalyzing and Improving Processes
An integrated approach to utilizing Capital, Materials, and Human resources to produce just what is needed, when it is needed. In the amount needed with minimum Materials, Equipment, Labor and Space.
A Lean DefinitionA Lean DefinitionA Lean DefinitionA Lean Definition
Identify and eliminate waste (MUDA).
Overriding PrincipleOverriding PrincipleOverriding PrincipleOverriding Principle
What’s in a Name . . .What’s in a Name . . .What’s in a Name . . .What’s in a Name . . . Toyota Production System, J.I.T., Lean Manufacturing,
Demand Flow Technology, Kaizen, is really Process Analysis !
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Building Blocks of The Lean EnterpriseBuilding Blocks of The Lean Enterprise
“Continuous Improvement”
TeamworkRewards / RecognitionTraining
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“Continuous Improvement”
ValueStreamMapping
TeamworkRewards / RecognitionTraining
Building Blocks of The Lean EnterpriseBuilding Blocks of The Lean Enterprise
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Quick Changeover
Standard Work Batch Reduction Layout
Mistake Proofing
5S SystemProjects Visual Management
POU
Cellular / FlowPull / Kanban TPM
“Continuous Improvement”
ValueStreamMapping
TeamworkRewards / RecognitionTraining
Building Blocks of The Lean EnterpriseBuilding Blocks of The Lean Enterprise
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An Operational Excellence Mission StatementAn Operational Excellence Mission StatementAn Operational Excellence Mission StatementAn Operational Excellence Mission Statement
Develop the ability:
• To recognize and identify waste
• To have to courage to call it waste
• To have the desire to eliminate it
• Eliminate the waste
• Truly understand that waste
– Raises costs
– Produces no corresponding benefit
– Threatens all of our jobs
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The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …
… for turning manufacturing and business processes into competitive weapons.
Producing what is needed, when it isProducing what is needed, when it is needed, with a minimum amount of needed, with a minimum amount of materials, equipment, labor and space.materials, equipment, labor and space.
“Prime Directive” - to continually seek out and eliminate waste and wasteful practices.
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The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …
… with these 4 Main Goals:
#1) IMPROVE QUALITY#1) IMPROVE QUALITY
#2) ELIMINATE WASTE#2) ELIMINATE WASTE
#3) REDUCE LEAD TIME#3) REDUCE LEAD TIME
#4) REDUCE TOTAL COSTS#4) REDUCE TOTAL COSTS
With an overriding principle: Safety 1Safety 1stst ! !to continually seek out and eliminate unsafe operating conditions and practices in every aspect of our Business.
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The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …
… with these 4 Main Goals:
#1) IMPROVE QUALITY#1) IMPROVE QUALITY
#2) ELIMINATE WASTE#2) ELIMINATE WASTE
#3) REDUCE LEAD TIME#3) REDUCE LEAD TIME
#4) REDUCE TOTAL COSTS#4) REDUCE TOTAL COSTS
With an overriding principle:• to continually seek out and eliminate unsafe operating conditions and practices in every aspect of our Business and every process within our Operations and to constantly, and consistently, enhance Health/Welfare, Safety and Environmental concerns and issues.
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With a well-planned implementation, overall expected RESULTS may include a … (within 12 months)
–35% to 50% reduction in lost time/
safety-related incidents and accidents
–15% to 30% decrease in scrap and rework
–25% to 40% reduction in total cycle time
The Promise of LeanThe Promise of LeanThe Promise of LeanThe Promise of Lean
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Defining Project Criteria - Breakout (Optional)Defining Project Criteria - Breakout (Optional)Defining Project Criteria - Breakout (Optional)Defining Project Criteria - Breakout (Optional)
This breakout will give you the opportunity to think about change… Each team is asked to brainstorm a list of criteria for a good KAIZEN (Process Analysis) project. Something you need to change.
These criteria could include Customer complaints, company culture issues, length of time to complete, an area of Lean focus or anything else that the team feels is an important criteria to consider in Process Analysis type project selection.
The team will have 20 minutes to brainstorm criteria and then we will discuss the results.
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The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseWhy Change ?
Lean Acceleration
Continuous Improvement Training
Lean Acceleration
Continuous Improvement Training
