Company Overview

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Company Overview
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What is Lean?

• The art of producing and delivering goods and
  services that deliver maximum value to the
  customer with minimal waste in the process. 
• Doing the right things (as defined by your
  customer) and doing them better, faster, and
  cheaper.
• Using less of everything compared to traditional
  business systems
• Less
• Effort
• Space
• Investment
• Inventory
• Time
• A process management philosophy
• Derived in large part from the Toyota Production
  System (TPS)
• Later successfully adapted in a wide variety of
  business settings manufacturing, maintenance
  repair, healthcare, professional services, office
  processes

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The Eight Wastes

• Overproduction
• Excess Transportation
• Waiting
• Inventory
• Unnecessary Motion
• Over Processing
• Defects
• Under-Utilised People

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Lean Principles

• Define value in the customers terms.
• Understand what it is that your customer values
  and is willing to pay for.
• Map and define the value stream. 
• The series of actions that collectively build
  value for the customer is the value stream. 
  Identify and eliminate non-value added
  activities.
• Make value flow. 
• Strive to implement a process in which
  value-creating activities can move quickly,
  seamlessly, with minimal effort and without
  backtracking or rework.
• Pull from later processes to earlier ones. 
• Have the cadence, or rhythm of activity, driven
  by being pulled from the customer at the end of
  the process, rather than pushed by the producer
  or supplier to the process.
• Continually strive for perfection.
• Constantly learn and improve.

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Growth and Spread of Lean
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Steps in the Lean Journey
Lean Awareness Why Do It?
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Resources
Lean Awareness Why Do It?
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Lean CI Company Background

• The two principal founders
• Experienced CEOs
• Over 40 years experience in implementing lean in
  a variety of industries and environments
• Manufacturing
• Overhaul repair
• Aviation
• Government military
• Health care
• Publishing
• Office processes professional serviceslegal,
  financial, engineering
• Network of associates throughout Europe and North
  America

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Lean CI Team

• Stephen HardgraveCo-founder and Managing Partner
• 25 years of aviation experience, 12 at CEO/MD
  level
• 20 years of lean experience
• Industry Experience
• Aircraft Management Technologies (CEO)
• Sermatech UK (CEO)
• Pratt Whitney (Managing Director, VP General
  Manager)
• US Navy aviator (Commander, USNR, retired)
• Education MBA (Harvard), MSc. In Operations
  Research (US Naval Postgraduate School), BA (Duke
  University)
• Owen McClaveCo-founder and Managing Partner
• 20 years of aviation experience, 10 at CEO/MD
  level
• 13 years of lean experience
• Industry experience
• Lufthansa Technik (CEO of Turbine Overhaul
  business)
• Pratt Whitney (Managing Director, VP General
  Manager)
• Qualified accountant (Fellow, Chartered Institute
  of Management Accountants)
• Education BSc in Management (Trinity College
  Dublin)

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Industry Experience
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Lean CI Services

• Lean Consulting Services
• Lean Overview and Training
• Lean Audit
• Lean Organisational Design
• Value Stream Mapping (VSM)
• Kaizen Event Facilitation
• Product and Process Flow
• 5S
• TPM
• Mistake Proofing (Poka Yoke)
• Set-up Time Reduction
• Lean Impetus or Restart

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Lean CI Services (contd)

• General Management Consulting and Mentoring
• Management Offsite Strategy Session Facilitation
• Annual Planning and Monitoring for all Business
  Functions
• CEO Mentoring and Problem Resolution
• Management Team Mentoring and Problem Resolution

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Questions?
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Back Up Slides
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Lean programmes have gone by a variety of
names...
And buzzwords abound...

• Toyota Production System
• World Class Manufacturing
• Lean Manufacturing
• Flexible Manufacturing
• Six Sigma
• Kaizen
• TQM

• JIT
• SPC
• BPR
• DFO
• TPM
• SMED
• Poke Yoke
• Kanban

BUT
All have the same overall goal and all follow
the same set of principles
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All Lean programs work on the same principles,
but use different tools and techniques...
1. Identify the value stream
2. Make value flow
3. Pull from later processes to earlier ones
4. Continuously strive for perfection
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There is one fundamental goal of all Lean
companies
Eliminate waste
Waste takes many forms

• Wasted motion (product or people)

• Producing a defective part

• Providing a defective service

• Producing unneeded product (inventory)

• WIP levels above minimum needed

• Unnecessary work effort

• Rework

• Wasted time (queuing)

• Inspections and approvals

Waste is anything that the customer doesnt value
and is not willing to pay for
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Methods to achieve the four universal principles
(value, flow, pull, perfection) are of two
types...
Organisational Design
Process Improvement Tools

• Small teams self-contained, autonomous
• and process-focused

• Ownership of end-to-end process

• Decision making at low level

• Employee involvement
• empowerment

• Multi-skilled cross trained

These are complementary and mutually supporting
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Organisational Design
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Most companies are not structured to support the
value stream...
Companies are usually organised by function...
But the end to end process that provides value to
the customer cuts across functions...
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Functional departments (silos) impede the flow
of value...
Product is ordered
Product is manufactured
Product is delivered
Invoice is received
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Even within a department, functional
specialisation impedes the flow...
Actual Example Jet Engine Component Overhaul
Receiving
Shipping
Production Department
Milling Machining
Storage
Disassembly
CMM Inspection
Cleaning
Assembly
FPI Inspection
Turning Machining
Plasma Spray
Average turntime28 days
Heat treatment
Visual Inspection
EB Welding
X-ray Inspection
Tig Welding
Engineering Department
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Lean companies structure themselves into teams
which own much of the process
New Layout and Organisation, Jet Engine Component
Overhaul
Product Cell 1
Product Cell 5
Product Cell 2
Product Cell 4
Product Cell 3
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Lean companies structure themselves into teams
which own much of the process
New Layout and Organisation, Jet Engine Component
Overhaul
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These teams are focused on the end-to-end
process, and control as much of it as possible...
Average turntime 13 days (54 reduction) Labour
hours 30 reduction Materials cost 20 reduction
Plasma
EB Weld
CMM
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Process Improvement Tools
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Process improvement tools have many of the
characteristics of other tools...

• They are very useful under the right
  circumstances.

• They can make a job easier

• They can accomplish the job faster or reduce the
  effort required

• They can even make a job feasible which otherwise
  couldnt be done

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Process improvement tools have many of the
characteristics of other tools (contd)...

• They are specialised--designed for a particular
  job.

• But some are more versatile than others.

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Process improvement tools have many of the
characteristics of other tools (contd)...

• They can be destructive or dangerous if misused.

All have their uses, none is a panacea
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A common problem cynicism towards flavour of
the month programmes...
Just in Time
Right First Time
Kaizen
Flexible Manufacturing
This happens at many companies. Occasionally, it
occurs because the chosen tools were
inappropriate or were not used correctly.
More often, the changes represent positive
development and evolution. As the operation
improves, new tools are needed to reach the next
stage of development.
Usually, the cynicism occurs because people
dont understand the difference between
principles (which are universal, and have not
changed) and tools (which are specialised, and
will change)
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World Class companies are continuously searching
for new ways to improve...
TQM
Just in Time
Right First Time
Kaizen
Flexible Manufacturing
Changing tools does not mean that the old tools
were worthless!
The new tools will not be a universal miracle
cure either!
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Remember process improvement tools are only
tools...
To achieve the one overall goal
But they can be useful in advancing the four
universal principles
2. Make value flow
3. Pull from later processes to earlier ones
4. Continuously strive for perfection
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Conclusion companies around the world, in every
industry, have proven the benefits of Lean...
Not by doing exactly the same things...
And then creating streamlined, process-focused
organisations
And using a selection of tools appropriate to
their circumstances