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Developing A Continuous Improvement Environment August 2009

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Developing A Continuous Improvement Environment August 2009

  1. 1. Corporate Kinetics Business Results Delivered Developing a Continuous Improvement Culture
  2. 2. Corporate Kinetics Business Results Delivered Approach to Lean Enterprise CONTINUOUS IMPROVEMENT DEFINITION: Continuous Improvement is a set of principles, methods and tools organized into an overall strategy aimed at mobilizing the entire company in order to increase customer satisfaction at the lowest possible cost.
  3. 3. Proposed Continuous Improvement Process <ul><li>STEP 2: PROCESS FLOW MAP – CURRENT </li></ul><ul><ul><ul><ul><ul><li>current state for procedures, accountabilities and flow </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>“ hot spots” – gaps, redundancies, lead times, exceptions, etc </li></ul></ul></ul></ul></ul><ul><li>STEP 1: Training </li></ul><ul><ul><ul><ul><ul><li>prepare and motivate people with widespread orientation to CI, quality and training </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>create common understanding of need to change to lean </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>orientation to Lean Enterprise Tools </li></ul></ul></ul></ul></ul>
  4. 4. Proposed Continuous Improvement Process <ul><li>STEP 4: QUALITY SYSTEM </li></ul><ul><ul><ul><ul><ul><li>review quality management procedures in regards to non-conformance production processes, customer issues and returns </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>establish competent quality management procedures to eliminate/reduce non-conformances </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>establish metrics </li></ul></ul></ul></ul></ul><ul><li>STEP 5: PROCESS FLOW MAP – FUTURE </li></ul><ul><ul><ul><ul><ul><li>ideal/future state for procedures, accountabilities and flow </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>synchronize demand management and production planning </li></ul></ul></ul></ul></ul><ul><li>STEP 3: DATA COLLECTION AND ASSESSMENT </li></ul><ul><ul><ul><ul><ul><li>“ drill down” – review of data determining trends and predictability of the business </li></ul></ul></ul></ul></ul>
  5. 5. Corporate Kinetics Business Results Delivered Key to Success <ul><li>Prepare and Motivate People </li></ul><ul><li>Widespread orientation to CI, quality, training and recruiting workers with appropriate skills </li></ul><ul><li>Create common understanding of need to change to lean </li></ul><ul><li>Employee Involvement </li></ul><ul><li>Push decision making and system development down to the “lowest levels” </li></ul><ul><li>Trained and truly empowered people </li></ul><ul><li>Share information and Manage Expectations </li></ul><ul><li>Long term orientation with a “roll out” process </li></ul><ul><li>Investment of resources, financial and human </li></ul><ul><li>Identify & Empower Champions, Particularly Operations Managers </li></ul><ul><li>Remove roadblocks (I.e., people, layout, systems) </li></ul><ul><li>Make it both directive yet empowering </li></ul><ul><li>Action Based Learning </li></ul><ul><li>Self managed projects that proceed with significant guidance and oversight, including training in specific techniques and learning is primarily based on application (internalization, culture shift, skills, ownership, empowerment) </li></ul>
  6. 6. Lean Overview Orientation for leadership, mid-management, shop floor teams
  7. 7. Typical $ Cost Saving Results and Benefits Order processing lead time reduction 20 to 40% Manufacturing productivity gain 10 to 20% Cost-of-quality reduction 10 to 20% Set up time reduction 40 to 50% Inventory reductions 20 to 25% Warehouse productivity gains 10 to 25% Total reduction in logistics costs 10 to 20% Reduction in freight costs 10 to 15% On-time delivery 98% + Reduced floor space 30 to 50% Reduce purchasing costs 5 to 10% Proposed Continuous Improvement Process
  8. 8. Lean Enterprise Tools Separate Manual from Machine Time-Jidoka Elimination of Variation Understanding Value-Added Visual Controls Total Productive Maintenance Stop the Line! Design for Manufacturing Error Proofing Built in Quality Just in Time Quick Change Over & Lot Size Reduction Level Production Continuous Flow Produce only: What is needed, When it is needed… at Rate of Customer Consumption Pull System Sigma Logic Problem Solving Standard Work Communications Process Stability Measurement/System 5 S & Organization Value Steam Mapping Lean Visioning People STEP 1: Training Lean Enterprise Foundation of Operational Stability Flexible, Capable, Highly Motivated People Culture
  9. 9. Training Agenda <ul><li>Introduction </li></ul><ul><li>Why change? </li></ul><ul><li>The Concept of Lean </li></ul><ul><li>What is Lean? </li></ul><ul><li>Why Implement Lean? </li></ul><ul><li>Economics of Lean </li></ul><ul><li>Waste </li></ul><ul><li>What is waste? </li></ul><ul><li>Why does it matter? </li></ul><ul><li>Identification of waste </li></ul><ul><ul><ul><li>8 Kinds of waste </li></ul></ul></ul>STEP 1: Training <ul><li>Key Components of Lean </li></ul><ul><ul><li>5S / Visual Controls </li></ul></ul><ul><ul><li>Standard Work / Cell Design for Flow Production </li></ul></ul><ul><ul><li>Quick set-up techniques </li></ul></ul><ul><ul><li>Quality at Source/Error Proofing (Poka Yoke) </li></ul></ul><ul><ul><li>Load Leveling/Batch size reduction/Single piece flow </li></ul></ul><ul><ul><li>Pull/Kanban production </li></ul></ul><ul><ul><li>Autonomous maintenance and TPM (Total Productive Maintenance) </li></ul></ul><ul><ul><li>Value Stream Mapping VSM </li></ul></ul><ul><ul><li>Lean Metrics </li></ul></ul><ul><ul><li>The Lean Workshop and Continual Improvement </li></ul></ul><ul><li>Leadership Strategies </li></ul><ul><li>Conclusion </li></ul><ul><ul><li>Plan Do Check Act (PDCA) </li></ul></ul><ul><ul><li>Next Steps </li></ul></ul>
  10. 10. C ORPORATE K INETICS BUSINESS RESULTS DELIVERED Harvey Schiller T: 416-399-0173 E: [email_address] W: www.corporatekinetics.ca

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