Next Generation Manufacturing

Lean Transformation

Next Generation ManufacturingNext Generation Manufacturing

LEAN TRANSFORMATION

Next Generation Manufacturing

Objectives

• Align improvement efforts with corporate strategy based on metrics.

• Focus the entire organization on a few critical goals with greatest potential for impact w/sponsorship by leadership.

• Communicate strategy in a manner that facilitates effective deployment throughout the organization utilizing A3.

Next Generation Manufacturing

Process

• Assessment• Planning• Deployment

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Process Flow

Consultative Engagements

Deployment/Solution Suite

Plan Development (Hoshin) - True North (Mission Vision) - Competitive Priorities - Alignment - Value Prop (ROI)

Fintel Financial (baseline/benchmarks) - Comprehensive Assessment (GAP Analysis)

- Change Readiness/Culture

Advisory, using Fintel & PDCA Methodology

WorkshopsTraining

Assessment

Planning

Deployment

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Assessment• Completes “Competitive Review

Questionnaire” (CRQ)• Submit data to Fintel• Present & Discuss Benchmarking Results• Tour plant to verify Fintel results.• Assess Readiness for Change.• Choose improvement targets.

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True North

• Who are we?• What do we believe

in?• Where are we

going?• What have we

learned? (from failures and successes)

• What do our customers really want?

• What would failure mean for our community, families, team members?

• What advantages do we have over our competitors?

• What do we have to do to compete with them?

Strategic and philosophical purpose. (Hoshin)

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Planning• Define “True North”• Develop the Plan

– Competitive Priorities– Goals– Where are we now?– Where are we going?– How are we going to get there? (Actions)– Check Process

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A3

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Competitive PrioritiesCompetitive priorities are the items against which company owners, shareholders, CEO’s, etc. measuresuccess.

Example Competitive Priorities: Quality Cost Delivery Innovation Profit Growth, Market Strategy New Product Development Customer

Satisfaction

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Goals

Goals are specific enough to be measurable, andexplain what you will do. Example Goals:• Reduce Scrap from 1% to 0.5%• Increase On-time Deliveries from 92% to 99%• Decrease PPM defects from 500 to 60• Reduce Lead Time from 10 Days to 5 Days

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Deployment

• Deploy the Plan “Catchball”• Monitor the Plan• Solve Problems• Improve the System

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Organizational Culture

LearningOrganization

EmployeeInvolvement

Leaders

A Lean Culture

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LeadershipIs everywhere —

Or it isn’t anywhereSenge

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Teams in the Lean Enterprise

• Core Team• Steering Team• Short term Project Teams• Work Teams

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Teams in the Lean Enterprise

Core Team

The Core Team provides leadership to implement systems and practices that build an empowered workforce.

Steering Team

This cross functional, multi-level team’s responsibility is to build active employee involvement in continuous improvement projects that consider every aspect of the business, with the goal of perfection.

Next Generation Manufacturing

Work Teams

Work teams are work units that accept responsibility for continuous improvement in their assigned work area – such as a manufacturing cell – and are actively responsible for producing results.

Project Teams

Temporary project teams are formed to find solutions to specific problems, to test improvement ideas, and to implement improvement projects. .

Teams in the Lean Enterprise

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Managing ChangeWith Pull Forces

People don’t resist change —

— They resist being changed

You don’t drive change —

— You cultivate it

Change imposed from the top generates resistance

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Resistance challenges at the start of a change process• “We don’t have time”

• “There is no help”

• “This is not relevant”

• “Leaders are not walking the talk”

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Resistance challenges during a change process

• Anxiety about the openness of transparent processes”

• “This isn’t working”

• “The in-group is arrogant”

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Resistance challenges in a mature change process

• “Who’s in charge of this?”

• “We keep re-inventing the wheel”

• “Where are we going?”

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Change Participants

EarlyadoptersCAVE

people

Watchingwind direction

Willingcurious

Skeptics

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Lean EnterpriseCulture:

Everyone in an organizationlooking for answers to the

continuous improvement question:

How can We Do a Better Job?

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Benefits• Improved understanding of company position

relative to peers • Promotes effective leadership• Focuses the organization• Achievement of critical goals• Greater top-line/bottom line growth• Greater agility to respond to changing business

conditions• Improved metrics for better business decisions• Improved business strategy and tactical execution• Greater alignment of workforce with business goals

Next Generation Manufacturing

Support Readings

• Pascal Dennis, “Getting the Right Things Done”• John Shook, “Managing to Learn”• Pascal Dennis, “Lean Production Simplified” • http://www.lean.org/Events/WebinarHome.cfm