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Lean Mfg Takeawayssharing



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Lean Mfg Takeawayssharing Lean Mfg Takeawayssharing Presentation Transcript

  • Lean Manufacturing Takeaways SCLC / ECC Spring Meeting April 26 th , 2007
  • Waste Eliminated 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 sequenced and made to continually flow. Remember what Lean is?
  • PRODUCT SHIPMENT CUSTOMER ORDER Lean is a philosophy which shortens the time line between the customer order and the shipment by eliminating waste. Time Business as Usual Lean Manufacturing PRODUCT SHIPMENT CUSTOMER ORDER Time (Shorter) Waste Waste
  • Basic Lean tools you will need… Kanban 5S’s and Visual Factory Pull Standardized Work Process TAKT time Error Proofing Value stream mapping Total Productive Maintenance
  • Implementing Lean - Leadership
    • An 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).
    • No 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, don’t try to jump to an end solution. Focus on culture, not tools.
    • Listen to consultant’s ideas and adapt them to your needs. Don’t 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. Don’t 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.
    Implementing Lean - Organization
    • 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
    • Focus 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 – Goal Setting
    • Have 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 – People
    • Certify 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 – Training
    • Have 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.
    Implementing Lean – Compensation
  • What you want to measure…
    • Productivity
      • 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 / unit
      • Must include all costs in the garment. Overhead, variable cost, labor, materials, etc.
  • What you want to measure…
    • WIP Cost for the system
      • Number of units inside the process times the value of the materials in the process.
    • First time through
      • Quality 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 time
      • Start by removing non-productive time into waiting time. It then moves from waiting to productive time.
  • Lean Pilot Results BEFORE PILOT IMPACT 88% more reliable process (Daily Schedule attainment) +/- 10% variation (Daily Schedule attainment) +/- 45% variation (Daily Schedule attainment) Variation in Process (Daily Schedule attainment) 33% reduction 2.1% daily 3.2% daily Absenteeism 13 times less units in inventory 0.3 units of WIP per unit produced 4 units of WIP per unit produced. WIP 93% reduction 0.27 days 3.7 days Lead Time 64% less sq. ft. per person 36 sq. ft. per person 102 sq. ft. per person Space 58% less defects 2.1% defects at final audit 4.6% defects at final audit Quality 60% Improvement 40 pr/person 25 pr/person Productivity
  • Lean Improvements by team
    • Productivity
    Before: 33 operators After: 27 operators
    • PDCA: Implementation of Lean Tools
    Associates received an award because of their participation in a PDCA targeted at reducing the defects in Seatseam Lean Improvements by team
  • Evidence of Progress toward Lean
    • Increased capacity
    • Higher inventory turns
    • More available floor space
    • Improved workplace organization
    • Improved quality: reduced scrap / re-work
    • Reduced inventories: raw, WIP, FG
    • Reduced lead times
    • Greater gross margin
    • Improved participation & morale
  • Lean resources
    • www.lean.org
    • www.productivityinc.com
    • www.productivitypress.com
    • www.leanadvisors.com