Leaning out our lives– Personal Lean
Why having less can make you more efficient
The WIKA Story
Removal of waste and sustainment of
Using technology to keep processes on track
Real business examples of success
How many bathrooms are in your house?
How often do you do Laundry?
Do you batch?
If you did your laundry everyday you would
need 7 times less clothes than doing it once a
Have you ever thought about the distance
Imagine every step is one second of your life!!!
Value added versus Non Value Added –
Necessary Non Value added
By freeing ourselves of waste we create
TIME and $$$$!
What to do with the Time & Money you free
Start a business
Patent an idea
Not more clothes
Have you ever thought about what you do
with the 168 hours you have each week?
You have a 168 hours in the week,
what do you do with them?
56 hours sleeping
1 hour doing my hair
8 hours driving my son
3 hours cleaning/laundry
50 hours working
8 hours playing sports/buying muscles
45 hours ?????
24 hours chasing girls
Your perspective - Not the media‟s
What is truly important in your life?
For me Value is something that removes
waste from my life, so I can focus on the
people I care about and golf
A girlfriend this would free up the 24 hours
chasing girls – net gain of 16hours to play
Who understands the value from their
Who is in the manufacturing space?
Do you deal with Market Volatility?
Is your company currently downsizing?
Who is planning to produce or is producing
During the period of 1995 and 2002
31million factory jobs disappeared from the
20 global economies.
Outsourcing and productivity gains are the
reason - Did they bring expected results?
Today labor is less than 10% of
manufacturing cost s– down from 60 to 70%
50 years ago – the main cost driver now is
indirect labor, The greatest waste is in your
I joined WIKA in 1997
2001 they start their lean Journey
Little Chinese guy offers them their product at
less than material cost.
Lean was being implemented on the
manufacturing floor with great success but
antiquated systems/processes were
leaving tremendous waste in the business
1970 1980 1990 2000 2010
99% of a business process is non value
added (from the eye of the customer)
Business processes were creating
Forecasting Tools – Mass Production
MRP - Batch Manufacturing
People spend hours reviewing data
Non-value added activities were the norm
Have customer orders feed directly into
manufacturing (Real time)
Level loaded manufacturing
Use Kanban of high selling products to level
load cells, make everything else to order
Created a flexible work force
Remove the departmental silos
Used 2p and 3p methods in your product
Used Business Kaizens to improve all processes
Kaizen – continuous Improvement process that works
Synchronized the supply chain using Technology
The competitive advantage lies in your
business process – Technology is your
Reduce Lead-time, increased flexibility,
Optimized to 1
Customer Service: 1 - 3 days
Increased usage of Model-Code (as described)
Planning: 1 - 5 days Total waste
Eliminate for Standards (MUDA)
Waiting Period: 5 - 10 days Buffer for
Allow only small window for smooting purpose smoothing 3 days
Kaizen shop floor
Production: 5 - 10 days
1 - 3 days
Can be optimized
Shipping: 1 - 2 days
to 1 day
TOTAL: 15 - 30 days
Time for potential errors and internal friction
Reduced Inventory $$$
Increased Customer Satisfaction $$
Shorten lead-times $$
Productivity improvements $$$
Re-engineer business process $$$
Reduced Over-time $$$
Synchronized your organization $$
Went from 12000 production orders in 2001 to
300000+ in 2008
FREE up CASH and be innovative!
“When we were a batch manufacturer our forecasts got
worse and worse; frequently changing demand patterns
rendered them unreliable. No matter how much finished
product we had, it was often the wrong stuff; customers
were never really happy with our agility to react to
changing demand patterns. Now we count in days.”
President WIKA Instruments
Pre-Plan Manufacturing Distribution
Mfg Dist A/R
Operational Lead Time
Improved Quality, Cost, & Delivery
Growth In Sales & Earnings
Today I work for eBECS, where I get to
apply technology and Lean in lots of great
companies, Buck Knives, Royal Canadian
Mint, Kriesler, Haldex, Brazeway assisted
by a tremendous team..
Today we are being asked to consume
more to drive the economy and help with
I would argue that we have to fundamentally change
and provide real value
Buying more creates more debt and therefore is a short
We need to think less in business and in our personal
lives to provide overall better value – sustainable
Demand for food and energy will jump 50%
by 2030 and for fresh water by 30%, as the
world population tops 8.3 billion. Innovation
and Lean are the keys to success