Lean Enterprise What is in for your Customers

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Lean Enterprise - What is in for your Customers ?

• Hira Fotedar
• Chairman WINOC
• President-Fotedar Associates

Medina- Lean Overview October 18, 2005
WINOC Work in Northeast Ohio Council 445 West
Liberty Street, Suite 225, Medina, Ohio
44256 [phone] l Fax [phone] l
www.winoc.org
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Lean Enterprise-What is in for your Customers?

• Outline
• Overview of Lean Enterprise
• Lean System Tools
• Case Study
• Lessons Learned

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What Is Lean?
Lean is a business environment where waste is
identified continuously and eliminated
passionately.
What Is Waste?
Any activity (or inactivity) that consumes
resources for which the customer is not willing
to pay.
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Seven Wastes of Lean
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Lean Enterprise Is Comprehensive
Flexible response and balanced flow
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Harbor Consulting Report
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International Car Distribution Programme (ICDP)

• The Chances in North America and Europe of
  getting a vehicle fixed right the first time are
  only about 80.
• The Chances of getting it fixed the first time
  and on time are only about 60.

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Lean EnterpriseConceptual Model
Total Product Delivery System for Fast
Flexible Response
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Lean System Tools

• Value Stream Mapping
• 5S
• Total Productive Maintenance
• Pull System (Kanban)
• Standardized Work
• Continuous Flow Manufacturing
• Set Up Reduction
• Error Proofing

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Value Stream Map
A Value Stream Map (VSM) is a hand-drawn map that
helps people to see and understand both workflow
and information flow within a manufacturing and
administrative process, or value stream, from
start to finish.
TheBIG Picture
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Why Do Value Stream Mapping?

• To create a high-level look at total efficiency,
  not the independent efficiencies of individual
  departments
• To visually identify improvement opportunities to
  eliminate waste
• Material Flow
• Paper/electronic document flow
• Information flow
• To help identify applicable improvement tools and
  plan for deployment
• To develop process measurements

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Typical Plant VSM
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Typical Business Process VSM
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Business Process Improvement Is Essential to
Build Lean Enterprise

• Non-manufacturing processes can consume as much
  as 70 of the order-to-cash lead time
• For many businesses SGA are substantial
  proportion of total costs
• Business Process Improvement helps address these
  opportunities

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Value Stream Map Driving Force!
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Applying Lean Six Sigma Tools During Product
Development
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Lean Enterprise DeploymentCase Study
Situation In X Aerospace business, parts are
sent in for repairs by the airlines. Many of them
are are not defective. X calls them No Fault
Found (NFF). In case the part is defective, X has
to provide a quotation for repairs. Currently,
the Turn Around Time (TAT) for this process is
too long. Objective Make the initial evaluation
process efficient and if the part needs repair,
send a quote to the customer and return the
part, if NFF. Reduce TAT. Process A Business
Process Improvement workshop was conducted, that
included several customer representatives. Value
Stream Maps (Current State Future State) were
developed to identify opportunities.
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Comments of Participating Customers
We appreciate the opportunity to work with
your Kaizen Event This is a step in the right
direction in securing our futures. Looking
forward to partnering with you in the future.
Van Kale, Delta Airlines Here are some words
of wisdom, change is constant and no one can
avoid it get ready to embrace it!
Sylvia Ewaskow, Boeing Corporation
This has been a powerful, productive and
informative week. All of the participants had the
synergy required to produce some very solid
recommendations and suggestions that we are
hopeful will be implemented. Having been here for
a week, we are looking forward to a better
partnering experience. Thank you for opening
yourselves to us. Glenice Daniels-Chambers,
DLA
There is a difference this time in visiting
Jackson. The people are not afraid of change. The
people within the Kaizen Event this week have
shown a willingness to look at what they do, how
they do it, and why they do it and want to change
it for what is best for the customer. Richard
Loader, Airbus
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Metrics
Close loop with Airlines on other potential
causes for failure to reduce number of NFFs.
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Lean Consumption - Jones/Womack

• Solve customer problems completely
• Dont waste time (minimize total cost of customer
  consumption)
• Provide exactly what the customer needs
• Deliver value when needed
• Supply Value when needed
• Reduce and simplify customer decision making

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Lessons Learned

• It is not only about deployment of tools.
• Chase the benefits to the bottom line. Our
  experience shows that the savings dont get
  generated automatically.
• Select the right set of metrics to assess
  deployment and benefits.
• A Lean / Six Sigma coordinator / expert is a
  tough hire it is sometimes easier to grow them
  than to hire them.
• Linking Six Sigma and Lean is not about creating
  a common logo or acronym. Project and event
  planning need to tie to a common goal and be
  prioritized together.
• Like most initiatives, management engagement is
  critical.