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ROTC mediocre!
Focus on SPEED
Process SIMPLIFICATION
Pull through the process as against Push
Balanced operations based on customer demand
Minimal build unless tied to customer order
Investments in Education and Training
Focused & dedicated resources
External resource in a complex situation
Extend to Supply chain also
Whats Different?
PROGRAMMATIC change rather than drive
by cost reductions
New performance standard - SPEED
NEW SKILLS applied to a reasonably good
operation
Provides a CONTEXT for change and
improvement
A HISTORY of success; both external and
internal
Targeted Benefits
Overall Value
Operating Profit
Price
Costs
Assets Employed
Growth
Working
Fixed
Market
Inflation
Product
A/P-A/R
Capacity
Value
Containment
Promotion
Inventory
Flexibility
Quality
Quality
Productivity
Speed
Delivery
Sources of Benefits
Realistic commitments
Flexible scheduling
Reduced expediting
ValueStream
Mapping
Future State
Target
Design
Important Foundations:
Continual
Improvement
Fi
re
Organizational
Education
Data Collection
- Baseline Metrics
- Product / Process
- Volume / Mix
- Flow Charts
- Work Content
Action Plan
Executive
Education
Current State
A
im
R
ea
dy
Operations
Strategic
Planning
Planning and
Preparation
Preventive Maintenance
Kaizen
Six Sigma Tools
Operations
Strategic
Planning
Organizational
Education
Stage 1
Current State
Data Collection
- Baseline Metrics
- Product / Process
- Volume / Mix
- Flow Charts
- Work Content
Future State
Target
Design
Foundations:
Stage 2
Action Plan
Executive
Education
Continual
Improvement
Preventive Maintenance
Kaizen
Six Sigma Tools
Stage 3
Stage 4
Stage 5
VSM
Value Stream Manager
Implementation Support
Employee Involvement
5S
Visual Control
Maintenance Management
Set-Up
Problem Solving
Wall-to-Wall Implementation
Line Design
Pull and Kanban
Kanban
Definition: Japanese for signboard or signal
Benefits:
Keeps inventory information with the inventory
Provides visual and simple replenishment
information
Provides simple production instruction
Provides simple move instructions
Can provide simple procurement process
Resources
Lean Executive
Helps insure appropriate resources for task; defends as needed
Sponsor
Establishes and defends appropriate budgets and human resource
commitments
Keeps to commitments for budgets and timing
Champion
Proactively develops metrics and communicates improvements to
rationalize investments
Prepares realistic action plans based on budget limitations
Manages projects carefully to protect resource commitments
Front Line Supervision
Works through issues to allow training and participation
Teams / Targets
Understands level of resources allowed
5 X 5 Definitions
Key Lean Executive - Point of Leadership in
5 X 5 Definitions
Front Line Supervision - Point of management of
activities contributing to the performance of a
process flow - calls near term actions
Success Factors
Involved Leadership
Planning
Project management skills
Simplification before systems
A local Champion
Employee Participation
Capital for capacity and flexibility rather than
cost reduction
Recognition and Pride
SIX
SIGMA
IDENTIFYING
WASTE
AND RESOLVING
ELIMINATION/
VARIATION
THAT CAUSES
REDUCTION
WASTE
VARIATION
ELIMINATION/
REDUCTION
WASTE
ELIMINATION/
REDUCTION
Unnecessary/Excessive Processing
Inventory: You pay for it, you store it, you move it,
you damage it, you lose it.
Defects
Unnecessary Movement: people or materials
Independent Inspection
SIX
SIGMA
VARIATION
ELIMINATION/
REDUCTION
Working Together
Ensuring repeatable processes within Takt
IDENTIFYING
AND RESOLVING
VARIATION
THAT CAUSES
WASTE
Time
Eliminating unnecessary processes
Stabilizing process uptime
Reducing the chances for uncommon errors
and defects; reduce tails
Determining appropriate buffers to keep
flowing
Eliminating unnecessary inspection and
testing
Lam
Supplier
Customer
Single Piece
Flow Standard
Work
TPM
Quick Change
DOE
I
Lam Kanban
Stack &
Cleat
7.4 Days
CT 74 secs
ST 120 mins
5 days
LEAN
1 Day
CT 850 secs
ST 50 mins
ADT 60 mins
7.4 days
74 secs
$38,000
I
Wind
5.1 Days
CT 60 secs
ST 45 mins
1 day
850 secs
$46,500
I
Dip & Bake
2.1 Days
CT 156 secs
ST 60 mins
$118,000
Final
Assembly
2.1 days
156 secs
.3 Days
CT 474 secs
5.1 days
60 secs
$21,100
I
WSA
.3 days
474 secs
$58,000
WASTE
ELIMINATION/
REDUCTION
$35,000
Production Leadtime: 20.9 days
Processing Time: 1614 secs
SIX
SIGMA
VARIATION
ELIMINATION/
REDUCTION
Program Plan
Action Plans