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Making Lean Work in Your Company

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Abstract
Learn how to make lean work in your company.
Lean Defined
Lean's Origin
5 Principles / 8 Wastes / A3
Making Lean Work in Your Company
Lean as a Strategy
Expectations
Typical Results
Tips for a Successful Transformation
Pitfalls to Avoid
Getting Started

Terry Norris, CEO
Terry Norris is a United States Air Force (USAF) veteran with more than 24 years of active service. His formal continuous process improvement (CPI) journey began in the early 1990's when the USAF implemented Total Quality Management. Since that time he's led several diverse and multinational teams to award winning success across the US, Asia, Europe and the Middle East. He spent his last few years in the USAF as a Lean Program Manager leading lean improvement projects across a 5,500 employee enterprise spread across five locations in four European countries. He literally developed the organization's CPI infrastructure from the ground up. He was the architect of the strategic and tactical plan and mapped out the responsibilities from the Executive Council down to the CPI team members. He personally led or managed dozens of improvement projects that improved performance, eliminated waste and significantly increased employee productivity and morale.
In addition, he influenced how the USAF developed aspects of their lean program. He wrote the first job description initially adopted by the USAF, and provided inputs for the USAF in Europe's: Concept of Operations, CPI event execution, metrics selection and familiarization training. He's taught multiple, 4-day Lean Green Belt courses and personally trained or briefed over 1000 employees on Lean methodologies. Lastly, he developed and taught a 2-day Root Cause Analysis workshop that was benchmarked and used throughout the USAF.
Terry is now a professional lean consultant and the owner of Lean Consulting Works, LLC; a lean consulting company. Lean Consulting Works, LLC provides on-site lean consulting and training with services ranging from enterprise-wide lean transformations to targeted improvements to various workshops and certifications. www.LeanConsultingWorks.com

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  • S - specific, significant, stretchingM - measurable, meaningful, motivationalA - agreed upon, attainable, achievable, acceptable, action-orientedR - realistic, relevant, reasonable, rewarding, results-orientedT - time-based, timely, tangible, trackable
  • The Wiremold Company is one of the leading producers of wiring and cable management products for residential housing and commercial building markets. Under the leadership of former CEO Art Byrne, The Wiremold Company embarked upon an aggressive program of quality improvement and product introduction using the “Kaizen” philosophy. As a result, The Wiremold Company is now considered a model of manufacturing excellence – nationally and internationally. In their book, Lean Thinking, James P. Womack and Daniel T. Jones write: “The company has more than doubled its sales with the same workforce, increased wages, upgraded its physical plant, entered into a permanent growth trajectory, and become outstandingly profitable.”
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    • 1. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comMaking Lean Workin Your CompanyPresented byTerry NorrisLeanConsultingWorks, LLC
    • 2. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean DefinedLean’s Origin5 Principles / 8 Wastes / A3Making Lean WorkOverview
    • 3. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean is an enterprise-wide strategy for achieving excellence…...by creating value (from the customers perspective)…by creating a culture of continuous performanceimprovement and working to eliminate ALL waste of resourcesand time…by creating high quality, stable processes and emphasizingrespect for people throughout the organization.LeanConsultingWorks, LLCWhat is Lean?
    • 4. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean is an enterprise-wide strategy for achieving excellence…...by creating value (from the customers perspective)…by creating a culture of continuous performanceimprovement and working to eliminate ALL waste of resourcesand time…by creating high quality, stable processes and emphasizingrespect for people throughout the organization.LeanConsultingWorks, LLCWhat is Lean?
    • 5. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean is an enterprise-wide strategy for achieving excellence…...by creating value (from the customers perspective)…by creating a culture of continuous performanceimprovement and working to eliminate ALL waste of resourcesand time…by creating high quality, stable processes and emphasizingrespect for people throughout the organization.LeanConsultingWorks, LLCWhat is Lean?
    • 6. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean is an enterprise-wide strategy for achieving excellence…...by creating value (from the customers perspective)…by creating a culture of continuous performanceimprovement and working to eliminate ALL waste of resourcesand time…by creating high quality, stable processes and emphasizingrespect for people throughout the organization.LeanConsultingWorks, LLCWhat is Lean?
    • 7. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean is an enterprise-wide strategy for achieving excellence…...by creating value (from the customers perspective)…by creating a culture of continuous performanceimprovement and working to eliminate ALL waste of resourcesand time…by creating high quality, stable processes and emphasizingrespect for people throughout the organization.LeanConsultingWorks, LLCWhat is Lean?
    • 8. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean Production...„Lean Production‟ is “LEAN” because it uses less of everythingcompared to Mass-ProductionHalf the human effort in the factoryHalf the waiting time for customersHalf the time to develop productsWith far less than half the inventoryResult… Fewer defects and more variety for customers!Ref: The Machine That Changed the World,James P. Womack, Daniel T. Jones, Daniel Roos
    • 9. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comWhere did Lean come from?Lean Philosophies / Methodologies
    • 10. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comForbes, 5-22-2012• Lean is a methodology derived fromthe Toyota Production System• Brought to the states by Womack &Jones 1990 (The Machine that Changedthe World).The Toyota Production System
    • 11. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comHow Can They Give Their Secrets Away?Why Does Toyota Let CompetitorsInto their Plants?Because What They Need to LearnThey Cannot See.
    • 12. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.com5 Principles of LeanLeanConsultingWorks, LLC
    • 13. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comValue (from the customers perspective)Value Stream (map the steps in the value stream)Flow (create a smooth flow)Pull (the right amount pulled at the right time, nomore, no less)Perfection (elimination of all waste in the valuestream)The Five Principles of Lean
    • 14. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comThe 8 Types of WasteLeanConsultingWorks, LLC
    • 15. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comTypes of WasteD - DefectsO - OverproductionW - WaitingN - Non-standard and OverprocessingT - TransportationI - IntellectM - MotionE - Excess Inventory
    • 16. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comWhat is an A3?A3 Thinking
    • 17. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comA3 ThinkingPDCA1. Business Case /Problem StatementScope / Boundaries2. Initial State3. Target State4. Gap Analysis5. DevelopCountermeasures6. Develop an ActionPlan7. Confirmed State8. Standardize, Sustain,Start OverPDCAPDCAPDCAPDCAPDDCAPDCAPDCA50% Trained100% On-Time75% On-Time98% Trained
    • 18. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comMaking Lean WorkLean Transformations
    • 19. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comOverview• Lean is a Strategy• Expectations• Typical Results• Tips for a Successful Transformation• Pitfalls to Avoid• Getting Started• Final Thoughts
    • 20. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean is an enterprise-wide strategy for achieving excellence…...by creating value (from the customers perspective)…by creating a culture of continuous performanceimprovement and working to eliminate ALL waste of resourcesand time…by creating high quality, stable processes and emphasizingrespect for people throughout the organization.LeanConsultingWorks, LLCWhat is Lean?
    • 21. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comSignificant Increase in:- Productivity- Usable Space- Flexibility- Employee Morale / Safety- Customer Satisfaction- The Bottom-Line!Significant Decrease in:- Lead times- Work in Process- Defects and Reworks- Inventory- Breakdowns and Changeover TimesWhat to Expect – The Positive
    • 22. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comExamples of Lean Success StoriesResults of Successful Change
    • 23. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comSetup Time Reductions at WiremoldEquipment TypeRolling millTon pressP.M. punch pressHole cut on mill 12282 1/2” extruderInjection molderBefore720905264180120After345551915% Reduction95%94%90%92%89%88%- Setup Times in Minutes- Results from 1-Week Kaizen EventsAverage Setup Reduction Time = 91%Ref: The Lean Turnaround, Art Byrne
    • 24. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean Improvements at Wiremold• Lead time dropped from 4 to 6 weeks to 1 to 2 days• Productivity improved by 162%• Gross profit improved from 38% to 51%• Machine changeovers went from 3 per week to 20-30 per day• Inventory turns improved from 3 times to 18 times• Customer service improved from 50% to 98%• Sales grew from $100 million to $400 million• Enterprise value increased by 2467% (from $30 million to $770millionRef: The Lean Turnaround, Art Byrne
    • 25. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean Results in Various Industries• Robins AFB: C-5 aircraft overhaul– Reduced time from 339 to 160 days– Mechanic travel time reduced by 60%– Freed up one dock for additional workload• Civil Engineers: StreamlinedAir Force design-build process– Second pass: Reduced flowdaysfrom 1,046 to 599 days (42%)• Filling Civilian Positions: Streamlinedportions of the end-to-end fill process– Reduced time from 160 to 120 days– AFPC increased serviced population 5,000positions with no additional manpowerShingo PrizeOnly DOD Gold-Level Winner
    • 26. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean Results in Various Industries• Airport Terminal– Designed CTK/MX Truck—saved-- 150 man-hrs per mo– Crew bus--saved $3100 + 230 man-hrs pr mo– Eliminated multiple refuels--saved-- 129-172 man-hrs per month• TN Wheel Factory: SMED (Quick Changeover)– First Practice Run: Assembly finished beforePaint; 1st Time in 23 Years!– “Impossible” became possible in 1 ½ days.• Aerospace Ground Equipment– Saved 2.2 days per week with 17 vs 33 people– $35K of equipment removed from process– Walking reduced from 17 miles/wk to 0.5 milesLubeLook/Quick FixFLOW
    • 27. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comWhat to Expect – The ChallengesExpect Resistance from all Levels
    • 28. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.com We tried that before. Our place is different. That‟s not my job. It costs too much. We don‟t have the time. Runs up our overhead. Laws and Reg‟s say we can‟t. That‟s not our problem. I don‟t like the idea. Good idea but impractical. Not that again. It‟s too radical a change. We did all right without it. Let‟s form a committee. It won‟t work in our office. It can‟t be done. It‟s impossible. We‟ve always done it this way. Top management won‟t buy it. Don‟t rock the boat. Quit dreaming. If it isn‟t broke... We don‟t have the authority. It‟s a customer requirement...Comments You‟ll Hear
    • 29. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comYear-1 Year-2 Year-3• Progress may seems slow• 2 steps forward/1 step back(which is okay)• Major resistance• Implementation errors• Jury still Out• Local areas of great progress• Change/Improvements, the Norm• Positive Momentum building• People are Engaged• Still gaining skills• Compounding Improvements• Demonstrating success• Making Great ProgressPerformanceKey MeasuresTypical Lean Journey
    • 30. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comLean Tips for Success• Lead the Transformation from the Top- It is a people transformation (cultural change required)• Build a core team of internal lean professionals• Focus on People and Processes- The goals (stretch goals) will take care of themselves• Make it Mandatory
    • 31. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comTransformation Pitfalls• Senior management does not lead the transformation• Internal lean professionals not supported• Fear of failure; avoiding any risks• Believing "hare lean" will beat “tortoise lean”
    • 32. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comInitial Lean Transformation Steps• Vision or Strategy Statement• Communication Plan• Roles and Responsibilities / Org Structure• Tactical Plan• Developing Internal Lean Capability• Training Plan• Annual Reviews
    • 33. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comOnce Ready…1. Announce Vision2. Provide Introductory Lean Training3. Enterprise Wide Value Stream Analysis4. Kaizen Events
    • 34. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comFinal Thoughts• Announce in advance that no one will lose their jobbecause of Lean; Reduce any headcounts beforeimplementing Lean (if applicable)• Along with the vision there will need to be a burningplatform• Run 1-2 events each month for 3-5 years in each facility asappropriate• Lean is a journey versus a destination; a marriage versus adating
    • 35. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comI. Lean TransformationII. Targeted ImprovementsIII. Onsite Workshops– Lean Green Belt Course (4-days)– Root Cause Analysis (1-2 days)– A3 Management (1-day)– 5S + Visual Management (1-day)– Single Minute Exchange of Dies (SMED), QuickChangeover (2-days)IV. Certification Programs– Green Belt Certification– Black Belt CertificationServices
    • 36. LeanConsultingWorks, LLCCopyright © All Rights Reserved | www.LeanConsultingWorks.comQuestions?LeanConsultingWorks, LLC

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