lantech cover page - lean manufacturing | lei | lean servicespractices as the materials team leader...

Discover the lessons Lantech has learned since the company's dramatic conversion to one‐piece flow was documented in Lean Thinking. Jim Lancaster will explain how flow powered the company's extraordinary growth for many years, and he'll reflect on why the lean transformation stalled, causing the company to give up some of the gains.

He'll reveal how the conversion was revived (after a false re‐start) with implementation of a lean management system that focuses on, in Lancaster's words "the details of the work of how we build [stretch wrapping] machinery, enter orders, invoice, and sell. By focusing on that detail and putting a management process in place to maintain the gains, we had another step change in performance."

A key part of focusing on the details is a daily walk through every department, led by a group of executives and functional area managers. The visit to each area keeps management involved in asking questions, coaching, and removing barriers.

You'll learn:

• What Lantech management has learned about how to sustain a long‐running lean effort • Misconceptions about lean and the role of tools • The key lessons learned during each phase of Lantech's transformation: the "blitz" phase, the "believing"

phase, and the current lean management phase • What makes a lean management system effective • Why lean is all about the structure and behavior of what happens between operators and managers

Plenary Session: Wednesday, March 3, 8:30 ‐9:15 AM

Breakout Session: Wednesday, March 3, 10:30 AM ‐12:00 PM

Jim Lancaster CEO and owner Lantech.com Jim Lancaster is the CEO and owner of Lantech.com, LLC, with sales and manufacturing headquarters in Louisville, KY, along with sales and manufacturing facilities in The Netherlands. Known as the leader in stretch wrap innovation, Lantech sells its packaging and material-handling machinery, including stretch wrappers, shrink wrappers, conveyors, palletizers, and case forming machinery worldwide to large consumer goods companies such as Procter & Gamble, Lever Brothers, Nestlé, Miller Brewing, and Pepsi. In the early 1990’s, Lantech became one of the early adopters of Toyota’s lean principals as documented in Lean Thinking: Banish Waste and Create Wealth in Your Organization by James Womack, founder and chairman of the Lean Enterprise Institute, and Daniel Jones, founder and chairman of the Lean Enterprise Academy. The company’s lean transformation also has been described in the Harvard Business Review and other publications.

Lancaster has participated in the company’s lean journey for the past 15 years and is now the lead executive driving lean throughout Lantech. Prior to joining the company, he worked in the financial industry with Catalyst Energy in New York City. He joined Lantech in 1990 as a sales manager in the Custom Machinery Group. Following several promotions, he became president/CEO in 1995. Lancaster graduated from Southern Methodist University with a double major in finance and marketing.

Gina McIntosh

Director of Operations Lantech.com

Gina McIntosh has over 30 years experience in different roles within Lantech. She learned about lean practices as the materials team leader implementing kanban in Lantech’s supply chain in 1992. Later, as a business team leader responsible for product line manufacturing and engineering, she learned first‐hand about lean tools and culture change. In 2007 as director of operations, she facilitated the implementation of Lantech’s lean management system.

Steve CliffordProduction Manager Lantech.com

Steve Clifford is production manager for seven Lantech product lines. One of his primary responsibilities is to develop the next level of lean leaders in order to maintain a culture that will sustain long‐term success. While holding different leadership positions during his 27 years at Lantech, Clifford experienced lean concepts and benefits first hand. He also spent three years as a continuous improvement engineer working on lean initiatives. He learned about lean methods in 1992 by participating in a kaizen event facilitated by Japanese consultants that was focused on moving from batch production to one‐piece flow.

Steve CliffordContinuous Improvement Engineer Lantech.com

After joining Lantech’s lean journey in 2000 as a factory leader, Alex Verret became a continuous improvement engineer in 2004. In this position, he focuses on process improvement, coaching, and teaching the application of lean principles at all levels in the company, from factory associates to company management, and across departments, including sales, purchasing, manufacturing, technical services, and engineering. Prior to Lantech, Verret served for 11 years as an officer in the U.S. Army Corps of Engineers. He continues to serve in the U.S. Army Reserve. Alex is also active with the University of Louisville, supporting the teaching of lean manufacturing concepts to industrial engineering students.

LANTECH’SLANTECH’SLANTECH’SLANTECH’SWalkabout ReviewWalkabout Review

(WaR)(WaR)( )( )

The Business IssueThe Business Issue

New Management SystemNew Management SystemEstablish a broad base of people and

processes to maintain and improve upon the current condition.

Step One. . .Step One. . .• Senior Leadership Boot Camp

• Understand the work environment (current condition)

Boot CampBoot Camp

Learn Do TeachMaintain

Step Two. . .Step Two. . .• Standardized Management• Visual Management

Maintain the Current Condition Improve the Current Condition

Andon

Issue Action DRI DueCorrective Action

KTML1

KTML2

KTML2

KTML3

KTML3

KTML3

KTML3

KTML3

KTML3

A3

PD

CCAA

PPDDCA

Action Window = 24-72 hrs

L3 L3

1 Yr 90-day 30-day Daily

AAActions to achieve goalsActions in response to a “tripwire”

How to set it upHow to set it up• Pick 1-2 metrics to start

– Use existing metrics– Relate to most pressing business issue– Add other metrics once the system gets running and

current metrics stabilize• Set Andon lines (Triggers)

M b b d bili i d i d– Must be based on current capabilities not desired targets

– Anytime performance crosses the andon line, action must occur to return performance to normal levels

How to set it upHow to set it up• Go and do - let PDCA work

– Set aggressive dates for getting small “chunks” up and running

– Set up practice sessions with your team to get comfortable with the process

– Build upon each “chunk”Build upon each chunk• Don’t worry about how the board looks –

focus on what it does!

WAR EvolutionWAR Evolution• Round #1: Quality & Skills• Round #2: Cost • Round #3: Focus on “Improve” side of board

Current MeasuresCurrent Measures• Manufacturing

– # Defects per machine– # Skill gaps– $$ spent on production supplies

• Technical Service & Spare Parts– % Abandoned phone calls% Abandoned phone calls– # open customer issues– % order entry errors– % on time shipment– % shipment accuracy

Current MeasuresCurrent Measures• Inside Sales

– # Quote backlog– % late quotes– % Abandoned calls (CRT)

• Company Services/Accounting# AR Past due 60 days– # AR Past due 60 days

– # Maintenance work orders backlog

Current MeasuresCurrent MeasuresP h i• Purchasing– # Non-conformances– # Late shipments from suppliers

• Engineering– Engineering backlog/lead-time

Shi i• Shipping– On time shipment– % Shipping predictability (on-time arrival from Mfg)

It’s all about supporting the work at each level

React to Environmental

Changes

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Changes (Abnormalities)

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.Self Identifies. .

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. . .

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Operators Team leader6:00-6:15am

WAR Management CycleWAR Management Cycle



StandardizedWork

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Team Leaders Factory Leader


Changes

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Factory Leaders Mfg Manager

6:00-6:15am

8:00-8:15am

(Abnormalities)

VisualManagement






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.Self Identifies. .

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Mfg Manager Senior Leadership Team9:40-9:50am

Problems Solving FlowProblems Solving Flow• Metrics “roll up” into the next level’s boards• Problems solved remain at the level in

which they are solved• Problems requiring resources outside of the

’ f t l i t th l lmanager’s span of control rise to the level that has the ability to resource the solution

Value/BenefitsValue/Benefits• Catch problems when they’re small • Quicker decision making• Links the business horizontally through the

route the WAR takes• Minimizes meeting time/maximizes problem

solving time

Daily CadenceDaily Cadence

Perfo

rman

ce

ProjectAdjustment

P

Time

Value/BenefitsValue/Benefits• Gets managers closer to the work• Management gains an in-depth

understanding of how the business is doing todayF ti t f i i• Frees up time to focus on improving

• The power of asking “anything else. . . ?”

ImpactImpact• Less frustration• Less frustration

– Know where to bring a problem– Can visually see the progress of solving problems– Lots of problems finally being solved

• Supports developing leaders faster– Daily “learn-do” cadence– Daily learn-do cadence

• Maintaining the current condition often results in improving the current condition

PitfallsPitfalls• Boards primary purpose becomes reporting

– Make the use of the boards part of the work

• The fine line between coaching/teaching and micromanagementand micromanagement– Keep problem solving at the right level.

WAR AgendaWAR Agenda

WAR AGENDA1. Receive area update

a. Are audits occurring?b. Are today’s skill gaps covered?

2. Provide action update on outstanding issues3. Are there any other business issues you are experiencing?4. Recap outstanding issues/actions/DRIs/due dates5. General issues/Miscellaneous

KEEP PROBLEM SOLVING AT THE PROPER LEVELKEEP PROBLEM SOLVING AT THE PROPER LEVEL

ChallengesChallenges• Engineering Quality• Sales

Managing Daily WorkManaging Daily Work• Product Development/Marketing• Left side of the board is run like the right

side of the board• Keeps a daily cadence on project work• Identifies project barriers

Success CriteriaSuccess Criteria• Hold current condition by integration of

management and the work• Build a system to support a continuous

improvement cultureC t l i f t d ’ k d• Capture learnings from today’s work and reapply them into the next day’s process and products

Quality Improvement Run RateQuality Improvement Run RateJanuary

2008December

20081st

Quarter2009

2nd Quarter

2009

3rd Quarter

2009

4th Quarter

2009

Q-Semi 5.4 3.1 3.1 1.5 1.4 1.3

Q-Auto 4 0 3 0 2 1 1 2 1 2 1Q-Auto 4.0 3.0 2.1 1.2 1.2 1

S Factory 14.0 4.5 4.5 4.5 3.8 2.5

lantech cover page - lean manufacturing | lei | lean servicespractices as the materials team leader...

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