Survivor: Lean Island Journey of Lean and Cultural Impact

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Survivor Lean IslandJourney of Lean and
Cultural Impact

• American Society for Quality
• November 16, 2004

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Speakers

• David Velie
• BBA from Lee University
• 13 Years of Manufacturing
• Consulting 2 ½ Years

• Craig Todd
• BSIM from University of Cincinnati MBA from
  Xavier
• 14 Years of Manufacturing
• Consulting 3 ½ years

Total Companies of Lean Implementation 24
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Goals of Today

• Better understanding the concept of Lean and what
  it means. 
• The Cultural Impact of Lean.
• Real Life implementation stories.

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What about YOU

• Your current role at your company.
• Your understanding of Lean and the importance of
  cultural change.
• Where is your company on the Lean Journey.
• Most important your role as the Survivor and
  Champion.

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What is Lean?

• Cultural Shift
• Customer Focus
• Stages of Lean
• Waste Elimination Focus
• Expectations through measurements
• Sustainability

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Stages of Lean
Level 4 Visual Management and Policy Deployment
Level 3 Production Smoothing and Mixed Model
Level 2 Takt Time and Pull Production

• Level 1 Waste Elimination

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In-Sourcing of Packaging

• Extra Week In Supply Chain
• Dedicated local driver
• Had all 9 forms of waste
• Space required for WIP - Queue
• Quality Problems with Packager
• Vendor provided service at inflated cost

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So we jumped into the deep end head first
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Try Storming Evolution
In-sourcing of packaging
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Lead time from 6 weeks to lt 2 days Reduced
3,000,000 pintles in WIP Reduced transportation
cost by 200,000 / year Reduced packaging cost by
250,000 / year Anybody need to lease a
truck? Team pulled together / Try Stormed / Still
Shocking the Culture
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Stages of Lean
Level 4 Visual Management and Policy Deployment
Level 3 Production Smoothing and Mixed Model
Level 2 Takt Time and Pull Production

• Level 1 Waste Elimination

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Waste or Non-Value Added

• An activity that takes time, resources or
  occupies space but does not add value to the
  final product.
• Affects negatively the Quality, Cost and Delivery
  of the final product to the customer.
• Causes your customer to go to your competition
  for business.

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Where to focus
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9 Wastes

• Waiting
• Motion
• Transportation
• Processing
• Overproduction

• Defects
• Inventory
• Excessive Information
• Untapped Creativity

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Overall Operational Process

• Understanding Current Process
• 5S
• Takt Time vs. Current Process
• Measurements
• Improvements and Waste Elimination
• New Process
• Sustainability

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Understanding Current Process

• Macro level of Plant
• Cell Layout
• Value Mapping
• Benchmarking
• Current Quality measurements FPY
• Cost Labor Standards, Material Variances
• Delivery On-Time

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5S

• Sort
• Set in Order
• Sweep
• Schedule
• Sustain

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5S Score Sheet
Improvements
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Takt Time Calculation
Net Operating Time 480 Breaks -
20 Cleanup - 10 Net Available 450 450 min
x 60 sec/min 200 Units/Day TAKT Time 135
Sec./Unit
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Time Observations
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Takt Time vs. Cycle Time
Observed Staffing ____________

____Operators

After Kaizen
Before Kaizen
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Standard Operations Sheet
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Kaizen Results Achieved
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Sustainability

• Start up Meetings Daily
• Production Meetings Weekly
• Link to Support Groups
• Managing, Measuring, Mentoring

3Ms
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Cultural Shift

• Tools vs people
• People and processes do what they are managed to
  do.. C/D
• Their must be an impact on how it is managed
• Good to Great.. Jim Collins
• Getting the people on / off the bus and in the
  right seats

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Cultural Shift

• People Results Speed Cultural Impact
• Teach a man to fish. Recreate yourself in
  others to increase your impact

• The process that you apply LEAN to is the
  vehicle for the Cultural / Management change ..
  Not the product

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Why do this.

• Where do most manufacturers fit on the QCD
  baseline.
• High Quality Producer
• Fast Delivery and quick to Market
• High Cost High Price

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Why do this?

• Establish foundation

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Goals of Today

• Better understanding the concept of Lean and what
  it means. 
• The Cultural Impact of Lean.
• Real Life implementation stories.

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Where Lean goes next is up to you