lean manufacturing
TRANSCRIPT
Approaching Lean Manufacturing with Warehouse Execution Systems
Software, Hardware and Business Concepts
Presented by:Michael Armanious
Retrospective
• Has your company implemented lean technology based concepts?
• Are you getting all you expected from it?• Do you see other organizations achieving
greater productivity, profitability and market share from their strategies?
• Do you perceive room for improvement?
Real Time Process and Function
In order to achieve the proper strategy one must evaluate the entire enterprise to achieve
optimal execution.
Traditional Approaches
• Lack of management support• Poor metrics• Not enough training• Resistance to change• Ineffective communication• Not able to sustain initial efforts• No buy-in from supervision• No buy-in from workforce
Traditional Approaches
• Not involving stakeholders in the planning process (primary cause of resistance)
• Not considering the entire organization as a system
• Not understanding the real purposes for the initiative
Root Causes for Lean Gap
• Reactionary Decisions• Uncertain workforces looking for leadership• Shifting supply chains• No clear direction, fuzzy and changing targets
Reactionary Decisions
• The need to hit quarterly numbers• The need to appease shareholders’ current
expectations• The need to hit analyst targets• Focusing on short term goals
Reactionary Decisions
Manufacturers
Capital Equipment in-vestment
Information Technology
Process Improvement Ini-tiatives
Business as Usual
Uncertain Workforce
• Coaching and communication hit rock bottom with downsizing
• Relationships are severed between employee and management
• Employee becoming more anxious• Undefined or unclear roles for employees
Shifting Supply Chains
• Key vendor failure of critical raw materials or components
• Major customers cancel or slash orders• Cash flow management as only measurements• Main problem becomes a glut of inventory
No Clear Direction
• Reactionary, short term decisions that do not consider what might lie beyond the horizon
• Employees without guidance• Supply chain without collaboration• Main problem becomes a glut of
inventory
Regardless of current conditions, manufacturers need the ability to see,
react, and change instantly– while adhering to the goals and objectives
that guides them.
NO CLEAR DIRECTION
What needs to be done
GOALTime to set long term strategies
Managers and supervisors
must be leaders
Everyone sees, reacts, and
changes
Improvement into the supply
chain
Lean through Performance Management
Methods, systems and personnel that enable an organization to set goals and
the assess progress toward those goals on an individual, department, and
companywide basis.
Performance Management
Manufacturing Processes and ObjectivesEliminates chaos and takes the guesswork out of strategic planning, allowing a manufacturer to continually identify problems and uncover opportunities across the entire organization
Lean Checklist
• Strategic vision in place• Performance management readied• Process and functional targets monitored and
acted upon• Companywide goals and objectives monitored
and acted upon
Real Time Information Systems
• Operations management• Customer demand management• Supply chain management• Workforce management• Logistics management
Operations Management
How are operations performing, day-in, day-out, hour by hour?• Computer based customized dashboard tracking key
performance indicators (KPIs)– Historical KPI analysis– Links to reports– Day to day tasks– Standardized work instructions
• Pushing the right information in front of the right managers at the right moment
Operations Management
• Solve problems at an early stage• Reducing the need to escalate problems• Reducing missed production targets• Reducing missed delivery targets• Improving the quality of production• Reducing equipment failure• Increasing revenue
Customer Demand Management
Manufacturers need real-time customer information such as:• Accessing customer histories• Accessing customer buying patterns• Aligning sales efforts to current production capabilities• Efficiently translate demand into level production
scheduleReal time information can only be accomplished by capturing the data as transactions occur
Supply Chain Management
Manufacturers monitor their supply base for productivity improvements and hidden costs:• Identifying supplier risks as early as possible• Deliverability of raw/component materials on time• Maintaining consistent raw/component quality• Assessing financial stability of suppliersEDI or an electronic integration with your suppliers would increase visibility for both the supplier and the manufacturer allowing for proactive responses
Workforce Management
Manufacturers recognize that they must develop people in order to develop better products and processes:• Provide necessary training for the technology and software
being implemented• Placement of the correct resource for the proper task• Strive for productivity improvement through incentives• Foster the right amount of pressure and urgencyWorkforce management can only be achieved with proper tracking software with flexible process mapping making the business and product flow second nature to the workforce.
Logistics Management
Manufacturers can damage customer satisfaction and profits if logistics performance is poorly managed• Efficient design of a warehouse and distribution network• Freeing up cash by better coordinating inventories from
suppliers through to customer• Accurately hitting lead times and avoiding late-delivery charges• Reducing transportation costs• Flawless compliance with customers, suppliers and regulating
agencies such as FDA, USDAMonitory of your logistics process requires the capture of real time data translated into useful information
Implementing Lean Manufacturing
Lean on the plant floor through flow manufacturing using technology:• Work moves through the plant in predetermined
quantities (lots or batches)– Arriving at the work area– Waiting for other work to complete– Moving on as a unit to the next work area
Work is scheduled through production lines that contain a variety of resources arranged efficiently and tracked using hardware and software technologies.
RFID Implementation
Wireless Mobile Computers
Data Rich Barcoding in Manufacturing
Dashboard Technology
Summary
• Focus on identifying your own goals—one that articulates the value your company provides to customers and its competitive advantages in today’s volatile markets
• Cascade those few, key objectives that support the goals throughout the organization, translating them into meaningful goals for every function, department, and employee.
• Monitor and manage performance vertically within processes and functions and horizontally across the organization.
• Do it all again, over and over, recalibrating the organization based on the latest planning, goal-setting, failures, and achievements
