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freeleansite.com The Lean Enterprise The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training

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Page 1: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseWhy Change ?

Lean Foundations

Continuous Improvement Training

Lean Foundations

Continuous Improvement Training

Page 2: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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The purpose of the Key Concepts module is to recognize a need to change.

PurposePurposePurposePurpose

Page 3: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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The purpose of the Key Concepts module is to recognize a need to change.

Also, to allow you to become familiar with some of the basic principles of Lean and basic improvement

methods behind Process Analysis.

PurposePurposePurposePurpose

Page 4: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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The purpose of the Key Concepts module is to recognize a need to change.

Process Analysis is the foundation Process Analysis is the foundation toward achieving Process Excellence.toward achieving Process Excellence.

Also, to allow you to become familiar with some of the basic principles of Lean and basic improvement

methods behind Process Analysis.

PurposePurposePurposePurpose

Page 5: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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History of ManufacturingHistory of ManufacturingHistory of ManufacturingHistory of Manufacturing

Made to customer spec Single piece mfg… each product unique Variable quality Little inventory High cost … made for the rich

CraftCraftCraftCraft

Interchangeable parts – Whitney Division of labor – Taylor Assembly lines – Ford Labor strife

Mass ProductionMass ProductionMass ProductionMass Production

High variety Small batch sizes PPM quality Engaged workforce

The “Lean” EnterpriseThe “Lean” EnterpriseThe “Lean” EnterpriseThe “Lean” Enterprise

Page 6: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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Why Change ?Why Change ?Why Change ?Why Change ?

A need for change is usually characterized by:

– Quality is a “Q.A.” department responsibility

– Large production lots

– Large centralized stores

– Customer dissatisfaction

– Enormous part and process variation

– Set-up measured in hours instead of minutes

– Order entry times measured other than in minutes

– Product margins eroded by increasing operating costs

– Ever-increasing competitive pressures

Page 7: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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Why Change ?Why Change ?Why Change ?Why Change ?

Need for change is a STRATEGIC ISSUE which any

and every Manufacturer must address:

– Quality - How to improve it

– Cost - How to control it

– On-time Delivery - How to ensure it

Failure to improve in all three areas means a loss of competitiveness in today’s global marketplace.

Page 8: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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Why Change ?Why Change ?Why Change ?Why Change ?

“Lean Linking”

is …

Forward Thinking !

Page 9: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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Why Change ?Why Change ?Why Change ?Why Change ?

“Lean Linking”

is …

Forward Thinking ! xx

Page 10: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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Evolutionary vs. Revolutionary ChangeEvolutionary vs. Revolutionary Change Evolutionary vs. Revolutionary ChangeEvolutionary vs. Revolutionary Change

Having a forward looking perspective on continuous

improvement is a requirement of the competitive

marketplace and is the first step in becoming world-

class.

DO NOT set incremental improvement

goals over previous performance, rather -

Think of where we need to be:

- Continually declining costs

- Zero defects

- Minimal inventories

- Fully satisfied customers

Page 11: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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What can we expect with Lean Thinking? What can we expect with Lean Thinking? (over 5 years)(over 5 years)What can we expect with Lean Thinking? What can we expect with Lean Thinking? (over 5 years)(over 5 years)

Defects reduced by 20% per year

Delivery Lead Times reduced by more than 75%

On Time Delivery improved to 99+%

Productivity (sales per employee) increases of

15-25% per year

Inventory (working capital) reductions of more than

75%

Return on Assets improvement of 100%+

Page 12: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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Analyzing and Improving ProcessesAnalyzing and Improving ProcessesAnalyzing and Improving ProcessesAnalyzing and Improving Processes

An integrated approach to utilizing Capital, Materials, and Human resources to produce just what is needed, when it is needed. In the amount needed with minimum Materials, Equipment, Labor and Space.

A Lean DefinitionA Lean DefinitionA Lean DefinitionA Lean Definition

Identify and eliminate waste (MUDA).

Overriding PrincipleOverriding PrincipleOverriding PrincipleOverriding Principle

What’s in a Name . . .What’s in a Name . . .What’s in a Name . . .What’s in a Name . . . Toyota Production System, J.I.T., Lean Manufacturing,

Demand Flow Technology, Kaizen, is really Process Analysis !

Page 13: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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Building Blocks of The Lean EnterpriseBuilding Blocks of The Lean Enterprise

“Continuous Improvement”

TeamworkRewards / RecognitionTraining

Page 14: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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“Continuous Improvement”

ValueStreamMapping

TeamworkRewards / RecognitionTraining

Building Blocks of The Lean EnterpriseBuilding Blocks of The Lean Enterprise

Page 15: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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Quick Changeover

Standard Work Batch Reduction Layout

Mistake Proofing

5S SystemProjects Visual Management

POU

Cellular / FlowPull / Kanban TPM

“Continuous Improvement”

ValueStreamMapping

TeamworkRewards / RecognitionTraining

Building Blocks of The Lean EnterpriseBuilding Blocks of The Lean Enterprise

Page 16: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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An Operational Excellence Mission StatementAn Operational Excellence Mission StatementAn Operational Excellence Mission StatementAn Operational Excellence Mission Statement

Develop the ability:

• To recognize and identify waste

• To have to courage to call it waste

• To have the desire to eliminate it

• Eliminate the waste

• Truly understand that waste

– Raises costs

– Produces no corresponding benefit

– Threatens all of our jobs

Page 17: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …

… for turning manufacturing and business processes into competitive weapons.

Producing what is needed, when it isProducing what is needed, when it is needed, with a minimum amount of needed, with a minimum amount of materials, equipment, labor and space.materials, equipment, labor and space.

“Prime Directive” - to continually seek out and eliminate waste and wasteful practices.

Page 18: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …

… with these 4 Main Goals:

#1) IMPROVE QUALITY#1) IMPROVE QUALITY

#2) ELIMINATE WASTE#2) ELIMINATE WASTE

#3) REDUCE LEAD TIME#3) REDUCE LEAD TIME

#4) REDUCE TOTAL COSTS#4) REDUCE TOTAL COSTS

With an overriding principle: Safety 1Safety 1stst ! !to continually seek out and eliminate unsafe operating conditions and practices in every aspect of our Business.

Page 19: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …The Lean Enterprise is a Strategy …

… with these 4 Main Goals:

#1) IMPROVE QUALITY#1) IMPROVE QUALITY

#2) ELIMINATE WASTE#2) ELIMINATE WASTE

#3) REDUCE LEAD TIME#3) REDUCE LEAD TIME

#4) REDUCE TOTAL COSTS#4) REDUCE TOTAL COSTS

With an overriding principle:• to continually seek out and eliminate unsafe operating conditions and practices in every aspect of our Business and every process within our Operations and to constantly, and consistently, enhance Health/Welfare, Safety and Environmental concerns and issues.

Page 20: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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With a well-planned implementation, overall expected RESULTS may include a … (within 12 months)

–35% to 50% reduction in lost time/

safety-related incidents and accidents

–15% to 30% decrease in scrap and rework

–25% to 40% reduction in total cycle time

The Promise of LeanThe Promise of LeanThe Promise of LeanThe Promise of Lean

Page 21: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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Defining Project Criteria - Breakout (Optional)Defining Project Criteria - Breakout (Optional)Defining Project Criteria - Breakout (Optional)Defining Project Criteria - Breakout (Optional)

This breakout will give you the opportunity to think about change… Each team is asked to brainstorm a list of criteria for a good KAIZEN (Process Analysis) project. Something you need to change.

These criteria could include Customer complaints, company culture issues, length of time to complete, an area of Lean focus or anything else that the team feels is an important criteria to consider in Process Analysis type project selection.

The team will have 20 minutes to brainstorm criteria and then we will discuss the results.

Page 22: Freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseWhy Change ?

Lean Acceleration

Continuous Improvement Training

Lean Acceleration

Continuous Improvement Training