Lean Journey


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One Company\'s Lean Journey

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Lean Journey

  1. 1. One Company’s LEAN Journey <ul><li>S implify the process. </li></ul><ul><li>E liminate wastes through disciplined </li></ul><ul><li>efforts to understand and reduce </li></ul><ul><li>variation. </li></ul><ul><li>C reate value. </li></ul>
  2. 2. <ul><li>Value is added any time we physically change our product towards what the customer is buying. </li></ul><ul><li>If we are not adding value, we are adding cost or waste. </li></ul><ul><li>Lean Manufacturing drives the systematic elimination of waste. </li></ul>Value-Added Time : Minutes Time in Plant : Weeks QUOTE CASH KEY QUESTION – Are my customers willing to pay for this ???? VALUE ADDED
  3. 3. Look at the service(s) that you provide. Review each activity. Is the activity adding value? If YES If NO Is this the best way to do it? Can it be eliminated? If not, can it be reduced? NOTES: Be sure to include all the wasteful activities that occur “occasionally.” Remember – Value is defined by the CUSTOMER. LEAN THINKING: VALUE-ADDING ANALYSIS
  4. 4. Our Lean Journey <ul><li>Supplier Reliability Program </li></ul><ul><ul><li>Reduced supplier base 84% </li></ul></ul><ul><ul><li>Average 2000 score (quality, delivery, service) 76% </li></ul></ul><ul><ul><li>Average 2009 score (quality, delivery, service) 99% </li></ul></ul><ul><ul><li>Lead-time reduced from weeks to days or hours </li></ul></ul><ul><ul><li>Quality improvement </li></ul></ul><ul><ul><li>Delivery improvement </li></ul></ul><ul><ul><li>Service improvement </li></ul></ul><ul><ul><ul><li>From problem solving </li></ul></ul></ul><ul><ul><ul><li>To supply chain collaboration </li></ul></ul></ul>
  5. 5. <ul><li>Carrier Reliability Program </li></ul><ul><ul><li>Reduced carrier base 93% </li></ul></ul><ul><ul><ul><li>TL ( 5 to 1) </li></ul></ul></ul><ul><ul><ul><li>LTL (25 to 1) </li></ul></ul></ul><ul><ul><li>Rating Index = ((On time Delivery %) -(Claims/Total Outbound)) </li></ul></ul><ul><ul><ul><li>Average 2000 score </li></ul></ul></ul><ul><ul><ul><ul><li>LTL 92.1% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TL 91.8% </li></ul></ul></ul></ul><ul><ul><ul><li>2009 score </li></ul></ul></ul><ul><ul><ul><ul><li>LTL 99.5% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TL 100% </li></ul></ul></ul></ul><ul><ul><li>Service improvement </li></ul></ul><ul><ul><ul><li>From problem solving </li></ul></ul></ul><ul><ul><ul><li>To collaboration </li></ul></ul></ul>
  6. 6. <ul><li>Non-Productive Supplier Managed Inventory </li></ul><ul><ul><li>Eliminated PO’s </li></ul></ul><ul><ul><li>Reduced supplier base 98% </li></ul></ul><ul><ul><li>Reduced replenishment times </li></ul></ul><ul><ul><li>Continuous replenishment </li></ul></ul><ul><ul><li>Lower inventory levels and cost </li></ul></ul><ul><ul><li>Reduced overhead </li></ul></ul><ul><ul><li>Category management </li></ul></ul><ul><ul><li>No inventory transactions, items expensed </li></ul></ul>
  7. 7. Other LEAN Improvements <ul><ul><li>6S throughout organization </li></ul></ul><ul><ul><li>Process map organization from quote to cash </li></ul></ul><ul><ul><li>what should we be doing to provide better customer focus and satisfaction </li></ul></ul><ul><ul><li>Began pull production, triggered by customer demand </li></ul></ul><ul><ul><li>Kanban 107 vendor items </li></ul></ul><ul><ul><li>Kanban 122 internal items </li></ul></ul><ul><ul><li>Kanban reduced FG inventory dollars by 54 and reduced raw materials inventory dollars by 47% </li></ul></ul><ul><ul><li>Eliminated SKU’s </li></ul></ul><ul><ul><li>1 st Kaizen event reduced WIP 47% </li></ul></ul><ul><ul><li>Mini kaizen events (sometimes hours long) </li></ul></ul><ul><ul><li>Standard work instructions93% production spend, 3 sources </li></ul></ul><ul><ul><li>Since 2007 < WIP 87% </li></ul></ul><ul><ul><li>Throughput improved 193% </li></ul></ul>
  8. 8. <ul><ul><li>Started kanban pull production with Customer’s </li></ul></ul><ul><ul><li>Customer Kanban Customer #1 </li></ul></ul><ul><ul><li>reduced customer FG inventory dollars by 48% </li></ul></ul><ul><ul><li>no stock-outs or excess inventory </li></ul></ul><ul><ul><li>reduced lead-time from weeks to a day </li></ul></ul><ul><ul><li>Customer Kanban Customer #2, </li></ul></ul><ul><ul><li>reduced customer FG inventory dollars by 69% </li></ul></ul><ul><ul><li>no stock-outs or excess inventory </li></ul></ul><ul><ul><li>reduced lead-time from weeks to a day </li></ul></ul>
  9. 9. <ul><li>Simplified Scheduling </li></ul><ul><li>Less Transactions </li></ul><ul><li>Less Variation, “More” Predictability </li></ul><ul><li>Forecasts Become More Accurate </li></ul><ul><li>Quicker Response To Design Changes </li></ul><ul><li>Quicker Market Response </li></ul><ul><li>Problems Are Visible </li></ul><ul><li>Product Team Organization - Eliminates Departmental Conflicts </li></ul><ul><li>Facilitates Cross Training </li></ul><ul><li>Increased Sales </li></ul>ADDITIONAL BENEFITS
  10. 10. <ul><li>Remember, </li></ul><ul><li>The difficult takes time </li></ul><ul><li>The impossible takes just a little longer </li></ul>
  11. 11. Create a culture of positive attitude for Continuous Improvement