by Ian Glenday of Lean Enterprise Academy shown at the Lean Supply Chain Forum on 5th June 2007 ran by Lean Enterprise Academy

1. 1
Flow Logic
and
Every Product Every Cycle
How to start

2. 2
Where to start with current plant &
equipment limitations?

3. 3
The Glenday Sieve
• A tool to help
– Implement Every Product Every Cycle
– Remove waste

4. 4
The Glenday Sieve
- first analysis
% Cumulative
Sales
% Product
Range
50%
95%
99%

5. 5
The Glenday Sieve
- first analysis
Exercise
Data source: $B paint/coatings multinational

6. 6
The Glenday Sieve
– second analysis

7. 7
GreenGreen Products
%
Cumulative
Sales
% Product
Range
50% 6%
• High volume/small number of SKUs
• Create a “green stream” for these
products
– Enable the green stream to flow

8. 8
The Glenday Sieve
and
Value Stream Mapping
What do you map first?
The Greens

9. 9
The Glenday Sieve
and
Value Stream Mapping
To make the “greens” flow

10. 10
The Glenday Sieve
and
Value Stream Mapping
which will
as a consequence
reduce non-value added waste

11. 11
YellowYellow Products
% Cumulative
Sales
% Product
Range
50% 6%
95% 50%
Work to closely to align with Green products
– Piggyback with greens where
• Little change-over impact
• Differentiation happens off-line

12. 12
Yellows
• Work on reasons stopping yellows
going into green stream
• E.g.
– Changeovers
– Batch sizes

13. 13
Green stream
• Start with 6% range in fixed cycles
• Increase capacity (white space) through EOR
• Work on yellows
• Reduce barriers to being in green stream
• Move yellows into white space
• 50% product range BUT 95% volume in green
stream

14. 14
YellowYellow Products
% Cumulative
Sales
% Product
Range
50% 6%
95% 50%
– Utilize rapid improvement methodology to
remove barriers to flow
e.g.
• Grade change time, etc.
• Improve line performance

15. 15
BlueBlue Products
% Cumulative
Sales
% Product
Range
50% 6%
95% 50%
99%
• Opportunity for product or packaging
harmonization
• Product, materials and/or processing
include non-value adding complexity

16. 16
Blue SKU’s
- removing non-value adding complexity
– Back labels

17. 17
Blue SKU’s
- removing non-value adding complexity
• Facial Tissue mill
• Totally chaotic scheduling environment
• Clear bottleneck at the end of the production
process in making bundle packs
Blue opportunity – Printed Shrink Film

18. 18
EXAMPLE
Results:
• Removed Carton Orienter
• One week production cycle (now EPEW)
• Transformed a “chaotic” environment to a
smooth and “calm” one
• Focus on Multi-pack (Cyclone) bottleneck
– Output rates improved 22% two years in a row

19. 19
Red Products
%
Cumulative
Sales
% Product
Range
50% 6%
95% 50%
99% 70%
1% of Sales
30% of the SKUs

20. 20
More “institutional” waste

21. 21
Exercise
Impact of central limit theory
On
Sales predictability

22. 22
Facial Tissue Sales
FORECASTS PER WEEK
Code 28200 Code 28201 Code 28100 Code 28112 Code 32905
200 Ct Case 184 Assorted 100 Ct Case AV 112 Ct Case Walgreens 100 Ct
16,133 9320 5949 2038 120
Actual Demand Actual Demand Actual Demand Actual Demand Actual Demand
Wk of 5/30 15,386 8936 8743 4218 15
6-Jun 14,355 8413 4548 1874 15
13-Jun 17,695 9564 6572 3153 233
20-Jun 14,536 9242 5337 1011 66
27-Jun 14,513 8048 5363 1065 87
4-Jul 14,668 8246 5581 2002 117
11-Jul 16,931 8948 6043 1280 260
18-Jul 16,632 9699 5367 1781 66
25-Jul 17,777 10294 5200 1327 277
Average 15,833 9043 5862 1968 126
Green
Code
Red
Code

23. 23
Average Sales Forecast Accuracy
Product
Average Weekly
Sales
Weekly
Forecast
%
Forecast
Accuracy
28200 15,833 16,133
28201 9,043 9,320
28100 5,862 5,949
28112 1,968 2,038
32905 126 120

24. 24
Sales Forecast Accuracy at Weekly Level
WEEKLY FORECAST ACCURACY DATA
Week 1 2 3 4 5 6 7 8 9 Forecast
28200 Sales 15,386 14,355 17,695 14,536 14,513 14,668 16,931 16,632 17,777 16,133
F/C Acc. 95% 89% 110% 90% 90% 91% 105% 103% 110%
28201 Sales 8936 8413 9564 9242 8048 8246 8949 9699 10294 9320
F/C Acc. 96% 90% 103% 99% 86% 88% 96% 104% 110%
28100 Sales 8743 4548 6572 5337 5363 5581 6043 5367 5200 5949
F/C Acc. 147% 76% 110% 90% 90% 94% 102% 90% 87%
28112 Sales 4218 1874 3153 1011 1065 2002 1280 1781 1327 2038
F/C Acc. 207% 92% 155% 50% 52% 98% 63% 87% 65%
32905 Sales 15 15 233 66 87 117 260 66 277 120
F/C Acc. 13% 13% 194% 55% 73% 98% 217% 55% 231%
Actual Sales

25. 25
Sales Forecast Accuracy
at a Weekly Level
Lowest % Highest %
28200 to
28201 to
28100 to
28112 to
32905 to

26. 26
Sales forecast accuracy at a weekly level
0%
50%
100%
150%
200%
250%
1 2 3 4 5 6 7 8 9
28200
28201
28100
28112
32905

27. 27
What about Forecasting and
Sales Variability?
Generally bigger sellers have less
variability
therefore greater predictability

28. 28
Rationalisation is NOT the only option!
It is AN option
however
there are many solutions
Red SKU’s

29. 29
Buffer tank utilization learning
Pre lean/RFS: Schedule adjustments would have occurred at three points
(creating that “vicious cycle”)
Post lean/RFS: No schedule adjustments and normal variability is
handled through the buffer tank
0
50
100
150
200
250
2/12/2006
2/19/2006
2/26/2006
3/5/2006
3/12/2006
3/19/2006
3/26/2006
4/2/2006
4/9/2006
4/16/2006
4/23/2006
4/30/2006
5/7/2006
5/14/2006
5/21/2006
5/28/2006
6/4/2006
Avg of min su Avg of max su Sum of Inv SU
GPS TCR12SR FAMILY (All) LOCCODE (All)
SUN_DT
Data

30. 30
Remove the “window” in to the
Buffer Tank…
11/27 12/4 12/11 12/18 12/25 1/1 1/8 1/15
STING8RR OK OK OK OK OK OK OK OK
STING1CAS HIGH HIGH OK OK OK OK OK HIGH
STING3RR OK OK OK OK OK OK OK OK
STING12RR OK OK OK OK OK OK OK OK
STING15RR HIGH HIGH HIGH OK OK OK OK OK
STING1MR OK OK OK OK HIGH HIGH OK OK
STING1RR OK LOW OK OK OK OK OK OK
STING24RR HIGH HIGH HIGH HIGH HIGH HIGH HIGH HIGH
STING2CAS OK OK OK OK OK OK OK OK
STING2MR HIGH HIGH HIGH HIGH OK OK OK OK
STING6RR OK OK OK OK OK OK OK OK
OK OK OK OK OK OK OK OK

31. 31
Impact on people
G’day Ian
I am sure "easy" was a word that sprang to mind when we first
started fixed cycles...there was a general view that I was insane
but having said that the crew would assassinate anyone who
now tried to take their fixed cycle away...
I'm probably a certifiable "early adopter" and the things you
are proposing seem to make so much sense.
best regards
Marty

32. 32
Impact on people
Hi Ian
Our Green Flow project started with four products that made up around 30%
of our total capacity here in Denmark. To test Green Flow’s proof-of-concept
we ran three cycles of five weeks per cycle. After fifteen weeks, the project’s
final fermentation finished followed by the standard purification, granulation
or liquid formation, QC analysis and shipping procedures.
The project has been a big success. We have reduced our lead time by 50%
for the majority of batches. Even the few batches that required some reworking
have had a 33% reduced lead time. It has been possible to hold the vast majority
of the agreed start/stop times throughout the supply chain. And lastly almost
everyone, from operators to top management, thinks the Green Flow principle
is a far better way of production than what we were doing before. We expect that
Green Flow will no longer be considered a project but an established way of
production.
Best regards,
Herman Herz
Lean Facilitator

33. 33
Impact on people
From: Graham, Jeff
Sent: Monday, February 15, 2007 10:08 AM
To: Sather, Rick
Cc: Gardhouse, Brian
Subject: RE: Huntsville Lean-RFS
Hi Rick
RFS has been a tremendous success for the Huntsville assets. Since the RFS start-up
in 2006 productivity has increase from under 15,000 cph to over 18,000 cph in January 2007.
The steady upward trend in rate of operation is a testament of the power of a frequent,
stable, predictable repeating schedule. I am a believer and would fight any efforts to go back
to the prior scheduling chaos!
We’ve been digging into the productivity improvement “toolbox” using standard techniques
fitted into the RFS structure. SMED, centerlining, TPM and equipment improvements are all
used to improve rates of operation. The approach has been practical with operations and
technical team members’ involvement. In particular, the line mechanics and electrical
Support are fully engaged making improvements regularly. Efforts have concentrated on
eliminating “rocks”, reducing equipment variables and stabilizing the process.

34. 34
A major shift in thinking is the idea of “making the cycle” versus daily rates of operation.
Instead of measuring rates of operation, we measure where we are in the cycle – ahead or
behind by hours. Also when extra hangs are made, it provides all team members a
measurable contribution to the business their efforts made especially when there are
customer service issues.
As for challenges, RFS continues to show us weaknesses in equipment, procedures and
people. Example: the facial tissue grade 280’s continues to be a challenge. Given it is run
every week; we know operating issues are independent of operating team, materials, current
procedures and equipment set-up. Plans have been developed to methodically address
observable barriers to flow to improve rates of operation. Although 280’s rates of operation
are stable and predictable, they are poor compared to other grades.
As I stated at the start, the Multifolder rates of operation continue a steady upward positive
trend in rate of operation. The stable, predictable repeating schedule contributes to
problem solving and solution implementation. I am a RFS believer.
Jeff

35. 35
Rocks or
barriers to flow
• Visible
• Hourly
• Operator led
• Focussed on achieving plan
• Problem identification

36. 36
Downtime
– tends to get attention & resources
0
100
200
300
400
500
600
1 2 3 4 5 6 7 8 9 10 11 12
std output
actual output

37. 37
“Normal” production variability
430
440
450
460
470
480
490
500
510
520
530
1 2 3 4 5 6 7 8 9 10 11 12
std output
actual output
Average output = 501/hr

38. 38
“Normal” production variability
430
440
450
460
470
480
490
500
510
520
530
1 2 3 4 5 6 7 8 9 10 11 12
std output
actual output
Average output = 501/hr
• 501/hr average = seen as “good”
shift
•“good” hours balance “bad” hours
• little or no problem solving focus
• repeat issues not understood or
addressed
• operators get little or no resources
to help resolve their repeat issues

39. 3939
RockbustingRockbusting ProcessProcess
Operator ResponsibilitiesOperator Responsibilities
At the end of each hour, enter results on the
“Line 31 hourly Efficiency Board”
– Green Bar if over the standard
– Red Bar if under the standard

40. 4040

41. 4141
Contact ProcessContact Process
Operator
Make necessary contacts if the hourly case
count goes below the Standard Line
Efficiency.

42. 4242
Contact ProcessContact Process
Hour 1: Contacts the Line Supervisor
Hour 2: Contacts Shift/Area Manager

43. 4343
Contact ProcessContact Process
Hour 3: Contacts the Manufacturing Manager.
Hour 4: Contacts the Plant Manager.

44. 44
Rockbusting
• Focus on all “bad” hours
(not consecutive hours or single
reoccurring issue)
• Operator led
• Visible process that triggers help
(NOT a problem solving process)

45. 45
“ROCK” Busting - Sustaining Action:
Follow-up Process for Rock Identification & Elimination
No Team Action
Needed
Decision
Point
Lean Steering
Team decides
the need for
Rock Busting in
a certain area
Gather
information
from all shifts &
perform sieve
analysis
Potential Rocks
documented on
Supervisors
Daily Shift
notes (email)
Supervisor flags
the need for Rock
Busting Team to
meet
•Rock Busting Team Members
Operator
Supervisor
Maintenance Supervisor
Quality Assurance Specialist
Engineering
Sanitation
Maintenance Techs
Report Findings and
Corrective Actions to
Distribution with
specific timeline &
person(s) responsible
Implement Corrective
Actions and continue
to monitor hourly
results
Team Gathers Data
& Executes Problem
Solving Process
(Brainstorming, etc.)
Team involves any
other necessary
resources (incl.
Corporate)

46. 46
Schedule Breaks
A tracking mechanism

47. 47
Schedule Breaks
Example of tracking breaks
Hard
Rollover
8
Business /
Other
36
Materials
76
Customer
92
Site/Asset
113
0
20
40
60
80
100
120
2006 TOTAL FAMILY CARE RfS Schedule Breaks
Hard Rollover Business/Other Materials Customer Site/Asset
unt of Reason Description
Reason Description

48. 48
Schedule Breaks
Conclusions
• Schedule Break Log data is critical to understanding root
cause, and standardization of data is a must
• Three major barriers to flow:
– Site/Asset (36%)
– Customer (28%)
– Materials (23%)
2006 RfS Breaks - Internal or External* (%)
Customer
28%
Kimberly-
Clark
72%

49. 49
Schedule Breaks
Deeper dive – Site/Asset breaks
Site/Asset reason code breakdown (2006 totals)
0
5
10
15
20
25
30
White Space
Plan
Rates Project
Conflict
Machine
Failure
Human
Resources
Runout

50. 50
Schedule Breaks
Deeper dive
- Materials Breaks

51. 51
From Problem-hiding
to Problem-solving
• Focus on meeting the plan NOT line
efficiencies
• Identification of rocks & barriers to
flow
• Problem solving activity separate to
“get the line running NOW!”

52. 52
Changing the logic from
Batch to Flow
Overall Summary

53. 53
Toyota Production System
Jidoka
-Andon
-Poka-Yoke
-Visual control
-5S, etc.
Just-in-time
-continuous Flow
-Takt time
-Pull system
Customer service
Continuous
Improvement
And
Elimination of
MUDA (waste)
Lead TimeCostQuality
Stability & Standardized Work
Levelled production (heijunka)

54. 54
Production Levelling or
Heijunka
= Foundation of Lean
Therefore essential to being
a truly Lean Enterprise

55. 55
• Final step in the process, not how Toyota started
• What you see is different to how it was achieved
• You now know the “secret” =
EVERY PRODUCT EVERY CYCLE

56. 56
New Paradigm Supply Chain Logic
• Every Product Every Cycle is the key and
required to support production leveling
• Use the Glenday Sieve and pattern production
based on SKU categories
• Rigid cycle (start time and sequence) creates
Economies of Repetition
• Utilize “buffer tanks” to manage variability and
exceptions
– instead of always re-planning to a target
– Flexible quantity when limits are broken

57. 57
Every product Every Cycle
• A rigid disciplined PUSH process
• Leads to stability and standardisation
as a consequence
• Invest improvements in faster cycles

58. 58
Progression over time
Establish an EPEC pattern,
leverage Economies of
Repetition (EOR) & create
stability. A push flow
Fixed sequence, fixed volume
Fixed sequence, unfixed volume
Unfixed sequence, unfixed volume
Respond closer to demand,
continue to rely on EOR.
Sustain flow with some pull
Produce to demand.
True flow and pull
At this point, you will have a true Consumer Driven Supply Network
Increasingcapability,responsiveness,lowercostandcash
Faster fixed sequence, fixed volume
Maximise impact of EOR &
stability. Increase rate of flow.
Unfixed sequence, fixed volume
Break reliance on EPEC &
EOR. Pull using small fixed
volumes.

59. 59
Getting started
What – specifically – are you
going to do as a result of this forum
next week?
Write it down.

60. 60
Levelled
production

61. 61
Levelled
production
Every Product
Every Cycle

62. 62
Levelled
production
Every Product
Every Cycle
The Glenday
Sieve

63. 63
Levelled
production
Economies of
Repetition
Every Product
Every Cycle
The Glenday
Sieve

64. 64
Levelled
production
Economies of
Repetition
Every Product
Every Cycle
The Glenday
Sieve

65. 65
Levelled
production
Economies of
Repetition
Every Product
Every Cycle
The Glenday
Sieve