THE SKY FACTORY – LEAN’S THE LIMIT Presented By: Emery, Solange, Pappu, Ravi, Pingshan, Helen, and Christian
INTRODUCTION
<ul><li>W. Edwards Deming </li></ul><ul><ul><li>“It is not enough to do your best; you must know what to do, and then do y...
<ul><li>Double  production volume with minimal increase in costs (i.e. hiring new employees) </li></ul><ul><li>Load leveli...
<ul><li>Based on two examples of cost-benefit analysis we have determined that: </li></ul><ul><ul><li>Margins can be incre...
CURRENT STATE
<ul><li>Pre-Lean status   </li></ul><ul><ul><li>Layout not optimized </li></ul></ul><ul><ul><li>Very cluttered work space ...
<ul><li>Lean steps already implemented </li></ul><ul><ul><li>Value Stream Mapping </li></ul></ul><ul><ul><li>Process mappi...
<ul><li>Needs </li></ul><ul><ul><li>Analysis of the organization and resources </li></ul></ul><ul><ul><ul><li>Reengineer t...
PLANNED IMPLEMENTATION
<ul><li>Identify lean managers </li></ul><ul><ul><li>Identify value stream champion and lean managers </li></ul></ul><ul><...
<ul><li>Process mapping </li></ul><ul><ul><li>Map the current state </li></ul></ul><ul><ul><li>Identify lean metrics </li>...
PLANNED IMPLEMENTATION <ul><li>Make metrics visual </li></ul>
PLANNED IMPLEMENTATION <ul><li>Catchball </li></ul>
<ul><li>Sustaining lean initiative </li></ul><ul><ul><li>Kaizen events have to be scheduled (e.g. every Friday) </li></ul>...
<ul><li>View Gantt Chart </li></ul>GANT CHART OF KAIZEN ACTIVITIES
COST BENEFIT ANALYSIS
<ul><li>Implementation of lean at The Sky Factory will benefit the whole organization.  </li></ul><ul><li>We have applied ...
PROJECTED BOX SCORE FOR LEAN IMPLEMENTATION $436,320 $363,600 $303,000 PRODUCTION SALARIES & WAGES WITH LEAN assuming 20% ...
PROJECTED BOX SCORE FOR LEAN IMPLEMENTATION 43 43 43 50 SKYMOBILE MILES PER PRESENTATION WITH OUT LEAN 26,740 13,370 13,37...
PROJECTED BOX SCORE FOR LEAN IMPLEMENTATION $24,177 $14,692 $ 18,050 $ 31,093 SKY MOBILE COSTS WITH LEAN ASSUMING A COST P...
PROJECTED BOX SCORE FOR LEAN IMPLEMENTATION 2008 2007 2006 $11,922 $3,358 MILEAGE SAVINGS DUE TO LEAN IMPLEMENTATION $221,...
<ul><li>Cost-benefit analysis shows </li></ul><ul><ul><li>Margins can be increased through savings of $100,000’s </li></ul...
CONCLUSION
CONCLUSION <ul><li>Current state </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><ul><li>Strong team  </li></ul></u...
CONCLUSION <ul><li>Current state </li></ul><ul><ul><li>Opportunities </li></ul></ul><ul><ul><ul><li>Processes not well man...
CONCLUSION <ul><li>Introduced lean (VSM, Process mapping) </li></ul><ul><li>Needs of the Company </li></ul><ul><ul><li>Imp...
CONCLUSION <ul><li>Continued implementation of lean </li></ul><ul><ul><li>4 month projection </li></ul></ul><ul><li>Cost-B...
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The Sky Factory Presentation

  1. 2. THE SKY FACTORY – LEAN’S THE LIMIT Presented By: Emery, Solange, Pappu, Ravi, Pingshan, Helen, and Christian
  2. 3. INTRODUCTION
  3. 4. <ul><li>W. Edwards Deming </li></ul><ul><ul><li>“It is not enough to do your best; you must know what to do, and then do your best.” </li></ul></ul><ul><li>Peter Drucker </li></ul><ul><ul><li>“There is nothing so useless as doing efficiently that which should not be done at all.” </li></ul></ul><ul><li>Tom Peters </li></ul><ul><ul><li>“Excellent firms don't believe in excellence - only in constant improvement and constant change.” </li></ul></ul>INSPIRATION FOR EXCELLENCE
  4. 5. <ul><li>Double production volume with minimal increase in costs (i.e. hiring new employees) </li></ul><ul><li>Load leveling </li></ul><ul><ul><li>Evenly distribute work by volume and variety over a specified period of time in order to make the most effective use of employees’ time </li></ul></ul><ul><ul><li>Achieved improved layout and flow </li></ul></ul><ul><li>Optimal work environment </li></ul><ul><ul><li>Clean, organized, standards </li></ul></ul><ul><li>Improved job satisfaction </li></ul>OUR LEAN VISION
  5. 6. <ul><li>Based on two examples of cost-benefit analysis we have determined that: </li></ul><ul><ul><li>Margins can be increased through savings of $100,000’s </li></ul></ul><ul><ul><li>Compounding effects can be achieved through continued implementation of lean </li></ul></ul>SUMMARY OF COST-BENEFIT ANALYSIS
  6. 7. CURRENT STATE
  7. 8. <ul><li>Pre-Lean status </li></ul><ul><ul><li>Layout not optimized </li></ul></ul><ul><ul><li>Very cluttered work space </li></ul></ul><ul><ul><li>Waste accumulation in production </li></ul></ul><ul><ul><li>Long lapsed time between steps </li></ul></ul><ul><ul><li>Poor process management </li></ul></ul><ul><ul><li>Poor coordination </li></ul></ul><ul><ul><li>Sub-optimization of department communication </li></ul></ul>CURRENT STATE
  8. 9. <ul><li>Lean steps already implemented </li></ul><ul><ul><li>Value Stream Mapping </li></ul></ul><ul><ul><li>Process mapping for custom elevator </li></ul></ul><ul><ul><li>Process mapping for tile lamination </li></ul></ul><ul><ul><li>Process mapping for layout </li></ul></ul><ul><ul><li>Process mapping for Sky Mobile </li></ul></ul><ul><ul><li>5S – Initial Sort, Set, and Sweep </li></ul></ul>CURRENT STATE
  9. 10. <ul><li>Needs </li></ul><ul><ul><li>Analysis of the organization and resources </li></ul></ul><ul><ul><ul><li>Reengineer the processes </li></ul></ul></ul><ul><ul><ul><li>Deploy resources optimally </li></ul></ul></ul><ul><ul><li>Selection of issues to be addressed - Criteria used include: potential benefit; ease of completion; visibility; mission critical </li></ul></ul><ul><ul><ul><li>Custom elevator process & production </li></ul></ul></ul><ul><ul><ul><ul><li>Put everything in order </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Shorten design time </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Streamline process </li></ul></ul></ul></ul><ul><ul><ul><li>Tile production and scheduling </li></ul></ul></ul><ul><ul><ul><ul><li>Design and develop lean work process </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Focus on communication </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Measure process time </li></ul></ul></ul></ul><ul><ul><ul><li>Scheduling for Sky Mobile </li></ul></ul></ul><ul><ul><ul><ul><li>Meet the needs of the customer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Minimize miles per prospective customer </li></ul></ul></ul></ul><ul><ul><ul><li>Leaner meetings </li></ul></ul></ul><ul><ul><ul><li>Recruitment of new employees </li></ul></ul></ul><ul><ul><ul><li>Sales and marketing process </li></ul></ul></ul>CURRENT STATE
  10. 11. PLANNED IMPLEMENTATION
  11. 12. <ul><li>Identify lean managers </li></ul><ul><ul><li>Identify value stream champion and lean managers </li></ul></ul><ul><ul><li>Value stream champion should be someone with the authority to allocate the organization’s resources </li></ul></ul><ul><ul><li>Value stream champion reviews the future-state map and reviews improvement (kaizen) plans </li></ul></ul><ul><ul><li>Value stream champion also reports to Bill Witherspoon </li></ul></ul><ul><ul><li>Value stream champion offers assistance to lean managers </li></ul></ul>PLANNED IMPLEMENTATION
  12. 13. <ul><li>Process mapping </li></ul><ul><ul><li>Map the current state </li></ul></ul><ul><ul><li>Identify lean metrics </li></ul></ul><ul><ul><ul><li>Total lead time </li></ul></ul></ul><ul><ul><ul><li>Total waiting time </li></ul></ul></ul><ul><ul><ul><li>Internal errors </li></ul></ul></ul><ul><ul><ul><li>Overtime </li></ul></ul></ul><ul><ul><li>Map the future state </li></ul></ul><ul><ul><ul><li>Customer demand </li></ul></ul></ul><ul><ul><ul><li>Continuous flow </li></ul></ul></ul><ul><ul><ul><li>Leveling </li></ul></ul></ul>PLANNED IMPLEMENTATION
  13. 14. PLANNED IMPLEMENTATION <ul><li>Make metrics visual </li></ul>
  14. 15. PLANNED IMPLEMENTATION <ul><li>Catchball </li></ul>
  15. 16. <ul><li>Sustaining lean initiative </li></ul><ul><ul><li>Kaizen events have to be scheduled (e.g. every Friday) </li></ul></ul><ul><ul><li>Lean events must be tied to strategy </li></ul></ul><ul><ul><li>Tie bonus of lean managers to lean initiative </li></ul></ul>PLANNED IMPLEMENTATION
  16. 17. <ul><li>View Gantt Chart </li></ul>GANT CHART OF KAIZEN ACTIVITIES
  17. 18. COST BENEFIT ANALYSIS
  18. 19. <ul><li>Implementation of lean at The Sky Factory will benefit the whole organization. </li></ul><ul><li>We have applied cost-benefit analysis to two examples: </li></ul><ul><ul><li>Labor costs </li></ul></ul><ul><ul><li>Sky Mobile scheduling </li></ul></ul><ul><li>Cost of initial project </li></ul><ul><ul><li>Estimated consulting fees over 4 months - $7,800 </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Increased margins </li></ul></ul><ul><ul><li>Reduced sales costs </li></ul></ul>COST-BENEFIT ANALYSIS
  19. 20. PROJECTED BOX SCORE FOR LEAN IMPLEMENTATION $436,320 $363,600 $303,000 PRODUCTION SALARIES & WAGES WITH LEAN assuming 20% pa growth $209,930 $71,150 SAVINGS ON SALARIES AND WAGES FROM LEAN $646,250 $434,750 $303,000 PRODUCTION SALARIES & WAGES WITHOUT LEAN $5,500,000 $3,700,000 $2,600,000 REVENUES 2008 2007 2006
  20. 21. PROJECTED BOX SCORE FOR LEAN IMPLEMENTATION 43 43 43 50 SKYMOBILE MILES PER PRESENTATION WITH OUT LEAN 26,740 13,370 13,370 23,032 SKY MOBILE MILES TRAVELLED WITHOUT LEAN 36,099 18,050 18,050 31,093 SKY MOBILE COSTS WITHOUT LEAN: assuming a cost per mile of $1.35 2008 2007 2006
  21. 22. PROJECTED BOX SCORE FOR LEAN IMPLEMENTATION $24,177 $14,692 $ 18,050 $ 31,093 SKY MOBILE COSTS WITH LEAN ASSUMING A COST PER MILE OF $1.35 17,909 10,883 13,370 23,032 SKY MOBILE MILES TRAVELLED WITH LEAN 30 35 43 50 SKY MOBILE MILES PER PRESENTATION WITH LEAN 2008 2007 2006
  22. 23. PROJECTED BOX SCORE FOR LEAN IMPLEMENTATION 2008 2007 2006 $11,922 $3,358 MILEAGE SAVINGS DUE TO LEAN IMPLEMENTATION $221,852 $74,508 GRAND TOTAL SAVINGS DUE TO LEAN IMPLEMENTATION
  23. 24. <ul><li>Cost-benefit analysis shows </li></ul><ul><ul><li>Margins can be increased through savings of $100,000’s </li></ul></ul><ul><ul><li>There is a significant difference between the benefits achieved from applying lean in different areas of the company </li></ul></ul><ul><ul><li>Compounding effects can be achieved through continued implementation of lean </li></ul></ul><ul><ul><li>The cost-benefit ratio is approximately: 1/10 </li></ul></ul>COST-BENEFIT ANALYSIS
  24. 25. CONCLUSION
  25. 26. CONCLUSION <ul><li>Current state </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><ul><li>Strong team </li></ul></ul></ul><ul><ul><ul><li>Dynamic culture </li></ul></ul></ul><ul><ul><ul><li>Visionary leader </li></ul></ul></ul><ul><ul><ul><li>Special unique product </li></ul></ul></ul><ul><ul><ul><li>Open book system </li></ul></ul></ul>
  26. 27. CONCLUSION <ul><li>Current state </li></ul><ul><ul><li>Opportunities </li></ul></ul><ul><ul><ul><li>Processes not well managed </li></ul></ul></ul><ul><ul><ul><li>Cluttered workspace </li></ul></ul></ul><ul><ul><ul><li>Sub optimization of department communication </li></ul></ul></ul><ul><ul><ul><li>Layout not optimized </li></ul></ul></ul>
  27. 28. CONCLUSION <ul><li>Introduced lean (VSM, Process mapping) </li></ul><ul><li>Needs of the Company </li></ul><ul><ul><li>Improve production </li></ul></ul><ul><ul><ul><li>Handle bigger work load with least resources </li></ul></ul></ul><ul><ul><ul><li>Other needs identified where lean could add value </li></ul></ul></ul><ul><li>Lean steps taken </li></ul><ul><ul><li>Aligning strategy with lean (strategy overview) </li></ul></ul><ul><ul><li>5S </li></ul></ul><ul><ul><li>Mini-kaizen </li></ul></ul>
  28. 29. CONCLUSION <ul><li>Continued implementation of lean </li></ul><ul><ul><li>4 month projection </li></ul></ul><ul><li>Cost-Benefit Analysis </li></ul><ul><ul><li>Analyzed 2 areas </li></ul></ul><ul><ul><ul><ul><li>Increase production without increasing labor cost </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sky mobile: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Better scheduling system </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>More exposure per mile </li></ul></ul></ul></ul></ul><ul><li>Increased margins </li></ul>
  29. 30. Thank you!

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