LEADING YOUR LEAN TURNAROUND

Art ByrneNovember 6-7, 2013

DELIVER MORE VALUE TO YOUR CUSTOMERS

THAN YOUR COMPETITION CAN

IMPROVE YOUR OWN VALUE ADDING

Compete On Your Operational Excellence

ESTABLISH THE LEAN FUNDAMENTALS

Work To TAKT Time

One Piece Flow

Standard Work

Pull System

5S AND SMED ARE FOUNDATIONAL ACTIVITIES

Set Up Reduction In One Week Kaizen

Rolling Mill 720m to 34m -95%150 Ton Press 90 to 5 -94%PM Punch Press 52 to 5 -90%Hole Cut Mill 64 to 5 -922.5” Extruder 180 to 19 -89%Injection Molder 120 to 15 -88%

AVG SETUP REDUCTION = 91%

SET UP APPROACH

Separate Internal From External

No Tools

No Cranes

No Money

MAIN THRUST IS TO GO FROM BATCH TO

FLOW

FIRST CREATE FLOW THEN PULL

• Set Up Reduction Comes First

• Create One Piece Flow Cells

• Establish Standard Work

• Create Visual Controls

• Implement Pull

PACE• Be Aggressive

• Two Kaizens Per Week Per Facility

• Two Set Up Kaizens, One Flow, One Office

• Celebrate Your Gains

RUN THE COMPANY ON YOUR OPERATIONAL EXCELLENCE GOALS

• 100% On Time Customer Service• 50% Reduction In Defects Per Year• 20% Productivity Gain Each Year• 20X Inventory Turns• Visual Control And The 5S’s

TRANSFORM THE PEOPLE

EVERYTHING HAS TO CHANGE

YOU CAN’T DROP LEAN ON A BATCH ORGANIZATIONAL STRUCTURE

• This Is The Most Common Error

• The Whole Company; Sales, Marketing, Finance, IT, HR, Must Make The Shift

• To Change The People Change The Structure

A LEAN ORGANIZATION REQUIRES;

• TEAMWORK

• TRUST

• RESPECT FOR PEOPLE

RESPECT YOUR PEOPLE

• Listen To Them

• Support Them

• Set Stretch Goals

REORGANIZE BY VALUE STREAM

• Team Leaders

• Buyer/Planner

• Value Stream Engineers

• Cell Leaders

• Support Functions

VALUE STREAM LEADERS

• Self Motivated Problem Solvers• Capable Of Running A Small/Medium Size

Business• Report to Both VP Of OPS and Senior

Team• Focus On Key Value Adding

Measurements• Complimented With A Strong KPO

YOU WANT TO GET TO A KAIZEN CULTURE

GET EVERYONE ON A KAIZEN TEAM

• Up Front Training

• Learn By Doing

• Multiple Kaizens

• Kaizen Team Leader

GO TO THE GEMBA• Kaizen Is A Doing Exercise

• Start With Projects That Will Give The Biggest Financial Impact

• Set Stretch Goals

• Attendance Should Be Mandatory

START WITH THE BIGGEST VALUE STREAM

• Create Model Lines Or Model Factories

• Two Set Up Kaizens and One Flow

• Do The Whole Value Stream

• Don’t Forget The Office

CREATE DAILY MANAGEMENT AT THE POINT OF VALUE ADDING

• Hourly Production Control Charts• Quality And Productivity Measures/Trends• Set Up Time Tracking• Daily TPM Tracking• Daily Meetings Countermeasures• Constant Management Support

REMOVE PRODUCTIVITY BARRIERS

• Multiple Job Classifications

• Piece Part Incentives

• Chairs, Food, Drinks In The Gemba

• Provide Lots Of Cross Training

ESTABLISH PROFIT SHARING

GET MARKETING AND SALES INVOLVED AND COMMITTED

START HOSHIN KANRI• Aligns Your Team Around Clear

Objectives

• Must Do Can’t Fail Projects

• Makes Available Resources Very Clear

• De-Select What Can’t Get Done

YOU ARE RUNNING A BUSINESS

• Progress Is Faster If You Learn From Your Mistakes

• Maintain An Atmosphere Of Constant Learning

• Kaizen Work Solves Customer Problems• You Have An Obligation To Your People• Protect There Jobs And Provide

Opportunities For Growth And Wealth Creation

SUMMARY

A KAIZEN CULTURE = AN UNFAIR COMPETITIVE ADVANTAGE