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Highlights of Lean Transformation experience.

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  1. 1. Key Accomplishments in Lean Implementation Chad B. Trail
  2. 2. Weil-McLain Fabrication Turn Around <ul><li>~1,800 SKUs </li></ul><ul><li>Make ~1.4 million parts per year. </li></ul><ul><li>Accounted for significant downtime on the assembly lines due to stock outs. </li></ul><ul><li>Before Transformation </li></ul><ul><li>Built to a forecast 2 months ahead. </li></ul><ul><li>Excess product stored in external warehouse. </li></ul><ul><li>Functional focus layout. </li></ul><ul><li>Uncontrolled Inventory at every stage. </li></ul>
  3. 3. Current State
  4. 4. Transformation <ul><li>Defined 3 part families by finding common routings. </li></ul><ul><li>Planned 3 separate value streams. </li></ul><ul><li>Trained people in the lean foundation of 5s and standardized work. </li></ul><ul><li>Did 3 week long Value Stream Mapping kaizens based on the three part families. </li></ul><ul><li>Re-arranged equipment in product focused layout based on 3 families. </li></ul><ul><li>Implemented the simplest value stream first. Needed to gain confidence of people and break the “our business is different” mindset. </li></ul>
  5. 5. First Phase
  6. 6. First Phase Results <ul><li>31% of volume of parts made. </li></ul><ul><li>Parts were dedicated to specific equipment. </li></ul><ul><li>34% efficiency gain due to operators getting familiar with running the same parts and minimizing the tooling variations. </li></ul><ul><li>Work was calculated to consume an entire shift but efficiency gains allowed for replenishment in about 6 hours. </li></ul><ul><li>~$187,000 (40%) reduction in inventory. </li></ul><ul><li>Used bins as kanban signal. </li></ul><ul><li>3 rd shift built what was consumed on 1 st . </li></ul><ul><li>Gained confidence that lean systems could work. </li></ul>
  7. 7. Second Phase
  8. 8. Second Phase Results <ul><li>13% of volume of parts made. </li></ul><ul><li>Arranged brake press, welding and assembly ops in a work cell. </li></ul><ul><li>Staffing is flexed based on demand. </li></ul><ul><li>Uses dedicated bins as kanban signal. </li></ul><ul><li>Reduced inventory ~$69,000 (30%). </li></ul><ul><li>Hasn’t shut down the assembly line since implementation in spring 2007. Previously was the #1 source of stockouts at the assembly line. </li></ul>Brake Press Finished Parts Mig Weld Box Weld Transition Assembly
  9. 9. Third Phase
  10. 10. Third Phase Results <ul><li>42% of volume of parts made. </li></ul><ul><li>Most complicated routing, involves punch press, brake press, weld, and paint. </li></ul><ul><li>Uses kanban card replenishment system. When parts are consumed, cards are returned to the kanban production board that is color coded to visually indicate inventory level. </li></ul><ul><li>Reduced inventory ~$320,000 (45%). </li></ul><ul><li>Hasn’t shut down the assembly line since implementation in fall of 2007. </li></ul>
  11. 11. Fourth Phase <ul><li>Implementing commercial parts into the 3 part families. </li></ul><ul><li>14% of volume but ~40% of inventory value. </li></ul><ul><li>Parts are shipped to customer in boxed sets. </li></ul><ul><li>Goal was to have a storefront of finished parts ready to package as customers ordered. </li></ul><ul><li>Current method was to slow the paint line down and paint an entire order in sequence to be boxed as it came off the paint line. </li></ul><ul><li>Slowing of paint line caused paint to be a bottle neck and starve assembly. Parts for assembly made up 86% of the demand for fabrication. </li></ul>
  12. 12. Fourth Phase I took on a supervisory role to make this part of the value stream happen
  13. 13. Fourth Phase Results <ul><li>I took on supervisory responsibility to make the future state happen for paint and packaging. </li></ul><ul><li>Brought 3 months of back logged orders up to date in just under 90 days. </li></ul><ul><li>Still maintains 98%+ OTD. </li></ul><ul><li>Implemented lean daily management system to allow for visible metrics and awareness of performance. </li></ul><ul><li>Trained 2 zone leaders to take over leading the operations so that I could move on to the next problem area. </li></ul>
  14. 14. Lean Supply Chain <ul><li>I took on responsibilities for buying and planning in order to get supplier kanbans implemented. </li></ul><ul><li>I was buyer of all metal and paint. </li></ul><ul><li>Setup E-kanban system with metals supplier. </li></ul><ul><li>Setup kanban controlled consignment inventory with paint supplier. </li></ul><ul><li>Reduced inventory by 36% (~$340K) in 6 months. </li></ul><ul><li>I used this template as an example for other buyers. I trained them in calculating kanbans and aided in collaborating with suppliers to implement supplier kanbans. </li></ul><ul><li>Year over year, total purchased inventory for the plant is down $9 million (26%) as of Dec 2009. </li></ul>
  15. 15. Sourcing Project <ul><li>I was tasked with leading the change of our method of packaging of our product. </li></ul><ul><li>Current concept has been used for 127 years. Same supplier for over 60 years. </li></ul><ul><li>I competitively bid the project to 3 companies based on one model. </li></ul><ul><li>Selected one to move forward on remaining models. </li></ul><ul><li>Attained ISTA certification making us the only manufacturer in our industry to have this designation. </li></ul><ul><li>Purchase price savings of ~$310K based on 2010 forecast. </li></ul><ul><li>Estimate to cut 75% of prior year’s shipping damages, $329K. </li></ul><ul><li>Estimated savings of $550K-$750K depending on sales volume. </li></ul>Old New Old New