lean manufacturing takeaways

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Lean Manufacturing Takeaways. SCLC / ECC Spring Meeting April 26 th , 2007. Remember what Lean is?. Lean constitutes a philosophy / culture of how to satisfy customers increasing demands for greater value. An ideal value-creation process exists when the fewest number of steps are properly - PowerPoint PPT Presentation

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  • Lean Manufacturing TakeawaysSCLC / ECC Spring MeetingApril 26th, 2007

  • WasteEliminatedLean constitutes a philosophy / culture of how to satisfy customers increasing demands for greater value.

    An ideal value-creation process exists whenthe fewest number of steps are properlysequenced and made to continually flow.Remember what Lean is?

  • PRODUCTSHIPMENTCUSTOMERORDERLean is a philosophy which shortens the time line between the customer order and the shipment by eliminating waste.TimeBusiness as UsualLean ManufacturingPRODUCTSHIPMENTCUSTOMERORDERTime (Shorter)Waste

  • Basic Lean tools you will need

  • Implementing Lean - LeadershipAn inspired leader at the top is required, somebody who takes responsibility for change.

    Operating managers need continual education and assessment to assure no backsliding.

    Change agent has to fully understand Lean Thinking.

    Remove the anchor draggers early. Small groups who simply can not accept new ideas.

    Make sure Upper Management drives the initiative. (Top Down approach is essential).

  • Implementing Lean - OrganizationNo cookie cutter approach; needs to take into account current culture, resources, etc.

    Look upstream and downstream. Include entire organization (at some point in time).

    Emphasize that lean is a process, dont try to jump to an end solution. Focus on culture, not tools.

    Listen to consultants ideas and adapt them to your needs. Dont follow all recipes exactly as presented.

  • Implementing Lean - Organization

    A plan for lean is like a 1 year forecast. So the process needs frequent modification.

    Adapt tools as needed. Dont force the use of a tool if there is no need.

    Create a Lean accounting system (ABC is of great help) around value stream costing. You still need financial accounting for GAAP requirements.

    Adjust metrics to support new culture.

  • Focus on matching execution & resources to capabilities. Careful with taking in too much.

    Mapping processes raise awareness about current states and spark new ideas to improve.

    Involve & inform all the stakeholders from the bottom up.

    Make small incremental changes constantly rather than one time change.

    Communicate the plan with clarity to all employees.Implementing Lean - Execution

  • Implementing Lean Goal SettingFocus on results (key metrics)Get data for the last 5 years.Benchmark your plant against the best plants worldwide.Compare your results against your own history.

    If there is no perceived urgent need, people will not perceive the need to change and will not change.

    Create scorecard to measure baseline metrics.

    Set goals and time frames for success criteria.

  • Implementing Lean PeopleHave a communication strategy that includes:Mechanism to keep everyone informed.Mechanism to handle improvement ideas.

    Establish Roles and Responsibilities clearly. Audit the compliance of the roles and responsibilities.

    Teams must have authority and resources to exist.

    Establish PBL process for teams to structure proper meetings, to set accountability and focus on metrics.

    When designing work groups, try to have small teams.

  • Implementing Lean TrainingCertify your staff on Lean Management techniques, prior to implementation.

    Spread lean techniques through intensive training across staff level.

    Cross train employees before implementation of module.

    Train personnel on soft skills prior to the start of the pilot.

  • Implementing Lean CompensationHave a well defined group compensation system in place before implementation.

    Pay system has to achieve behavioral changes that impact bottom line business results.

    Manage new pay system.

    Include indirects in your compensation scheme.

    Set non-monetary reward systems as well.

  • What you want to measureProductivity Units produced per day per employee (all employees in the building).

    Throughput Time (Dock to Dock)Time (in days or hours) it takes for units to move from first dock (receiving raw materials) to the last dock (finished goods shipping area).

    Total Cost / unitMust include all costs in the garment. Overhead, variable cost, labor, materials, etc.

  • What you want to measureWIP Cost for the systemNumber of units inside the process times the value of the materials in the process.

    First time throughQuality level at each step accumulated across all steps. % of the total that make it to the end with no re-work.

    Productive time, Non-productive time, Waiting timeStart by removing non-productive time into waiting time. It then moves from waiting to productive time.

  • Lean Pilot ResultsBEFOREPILOTIMPACT

  • Lean Improvements by teamProductivityBefore: 33 operatorsAfter: 27 operators

  • PDCA: Implementation of Lean ToolsAssociates received an award because of their participationin a PDCA targeted at reducing the defects in SeatseamLean Improvements by team

  • Evidence of Progress toward LeanIncreased capacityHigher inventory turnsMore available floor spaceImproved workplace organizationImproved quality: reduced scrap / re-workReduced inventories: raw, WIP, FGReduced lead timesGreater gross marginImproved participation & morale

  • Lean resourceswww.lean.orgwww.productivityinc.comwww.productivitypress.comwww.leanadvisors.com

    4Productivity - Measured in Average Complete Units per Hour per Person because it is important to consider the contribution of each person when comparing output from different team sizes. It measures how well you utilized available resources to produce the required (correct) garments.

    Throughput Time (Flow Time or Turn Time) - The average time spent in the system for each completed unit.