Workshop AWorkshop A Performance Boosting ToolsPerformance Boosting Tools

Reality Check: Are you a Lean, Mean Manufacturing Machine ?

The Matrix: Performance Measurement System

Producing Profitability through Producing Profitability through Lean ManufacturingLean Manufacturing

What is Lean Manufacturing ?Why should I adopt Lean Manufacturing ?How can I apply Lean Manufacturing ?

Bus Info

FlowSix Sigma

SU TPM5s

Kaizan

Value-added

What is Lean Manufacturing?What is Lean Manufacturing?A long-term philosophy to propel a box

plant to higher profitabilityA business strategy that focuses on rapid

continuous low-cost improvement in processes and productivity

A tactical plan that integrates several tools into a complete package

A relentless attack on waste using a set of tried and true tools and techniques

Why adopt Lean Principals ?Why adopt Lean Principals ?

Increase capacity Reduce inventories Reduce Cycle Times / Lead times Lower space/facility requirements Lower overall costs Improve employee moral through increased

involvement Increase sales through focus on customer and

value-added activities

Where did Lean Manufacturing Where did Lean Manufacturing come from?come from?

Lean Techniques are Not New

James Womack & Daniel Jones– The Machine That Changed the World (1990)– Lean Thinking (1996)

Toyota Production System (1950’s – 1970’s)– JIT / Kanban / SU Reduction / SOP / 5s / Flow

Motorola (1986-1988)– Six Sigma / Variation Reduction / Process Capability

Major ConceptsMajor Concepts1. Waste

Seven types Overproduction Waiting Material Movement Excess Inventory Excess Motion Defects Unnecessary Processing / Converting

2. ValueThose things the customer wants and is willing to pay for.

3. Value Stream All activities required to design, order, produce and deliver a product

or service.

Goal of Lean ManufacturingGoal of Lean Manufacturing

Focusing on the value stream, identify those things that create value vs. those that do not and relentlessly attacking waste.

Major ToolsMajor Tools Value Stream Analysis

– Identify Value-added vs. non-value added activities Six Kaizan Events

– 5s Housekeeping

– Flow

– Set-up reduction

– TPM

– Defect/Variation Reduction

– Business Processes/Information

Value Stream MappingValue Stream Mapping

Identifying Value Added vs. Non-value added Activities

Product families = items/orders with a common process or machine routing

Target each product family for improvement efforts

Kaizen EventsKaizen EventsShort burst of intense activity and effort (3-5 days)Biased toward action over analysisConsist of multi-functional team assembled to

achieve a specific goal or solve a specific problemFocused on improving the value stream and

achieving flowManaged with daily reviews to resolutionGoal driven – Solving Problems and eliminating

waste

Kaizen Event # 1Kaizen Event # 1

5s+1 Housekeeping– Sort– Set in order– Shine– Standardize– Sustain– +1 = Safety

Kaizen Event # 2Kaizen Event # 2

Flow– material, people and activities

Macro Level and machine/dept level

Lean Tools:– Spaghetti Diagram– Flow Charts

Kaizen Event # 3Kaizen Event # 3

Set-up Reduction

Lean Tools:– “Pit Stop” Set-up mentality– Video Tape and Set-up Analysis– Internal vs. External SU activities

Kaizen Event # 4Kaizen Event # 4TPM = Total Productive Maintenance

Goal is to minimize downtime & maintain capability of equipment

Lean Tools:– Develop Daily Operator PM and Maintenance PM– Develop equipment critical spare parts list– 5s Program contributes toward TPM

Kaizen Event # 5Kaizen Event # 5

Defect / Variation Reduction– Six Sigma Tools

Pareto ChartsHistogramsProcess Mapping (KPIV, KPOV)Cause & Effect AnalysisFMEACapability Analysis

Kaizen Event # 6Kaizen Event # 6

Business Process / Information Flow– Design Process– Quotation– Order Entry– Manufacture Order– Shipping Order– Customer Feedback– Accounting / Administration

Keys to Successful Lean Keys to Successful Lean ManufacturingManufacturing

Education and CommunicationEmployee Involvement & empowermentCreate a culture tolerant of experimentation

- allow people to successfully make mistakesBreak the paradigm that Inventory is an AssetIncorporate Lean concepts into you culture

and ongoing strategic plan – not a “project”

Are you a Lean Mean Are you a Lean Mean Manufacturing Machine ?Manufacturing Machine ?