First introduced in the automotive manufacturing industry, “Lean” is a systematic method for the elimination of wastes/the set of “tools” that assist in the identification and steady elimination of waste. Today, the continuous improvements delivered when applying a Lean approach can benefit organisations across all sectors .
This presentation provides an introduction to understanding the concept in the manufacturing context and tools available to make your processes flow smoothly, efficiently and profitably.
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Overview
• Lean Model
• What is Lean?
• Lean Business Journey, Timing & Themes
– Standardisation & Reducing Variation
– Identifying & Eliminating Waste
– Inventory Management
– Stuck in First Gear
3. Health and Safety
Environment
Ethics and Compliance
Employee engagement- Reward&
Recognition
Employee engagement- Talent
Development
Employee engagement-
Communication
Disaster Planning
Business Planning
Key Account Management
New Product Introduction
Customer Service
Sales and Operations Planning
Lean Tools
Lean Tools Training
Lean Improvement
Product Quality
Research and Development
Technology Transfer
IT Infrastructure
Branding
Act Plan
DoCheck
The Lean Business and
Operational Excellence
Order
Fulfilment
Lean
Business
10. What is Lean Thinking?
Inputs Your Process Outputs
11. 1st Step - ID your Value Streams and
create flow with what resources you have
Inputs Your Process Outputs
MRP, Shared Resource, unbalanced
shifts and long C/O times
Value Stream 1
Value Stream 3
Value Stream 2
Value Stream 4
12. 2nd Step eliminate the “knots and remaining tangles”
by dedicating resources to value streams - commit
yourself to single piece flow!
Input s Your Process Outputs
Value Stream 1
Value Stream 2
Value Stream 3
Value Stream 4
13. Lean Business Model
•Focussed on maximising profitability and
generating cash
•Links seamlessly with OE deployment and
Sales and operations planning
•Supports a plant-specific roadmap
•Drives local involvement and competition
•Combines all current best practice
22. Guaranteeing Output is a Manufacturing
Plant’s Number 1 Priority
QUALITYQUALITYPPEOPLEEOPLE
PPARTSARTS
PPLANTLANT
COSTCOSTPPROCESSROCESS
HOWINPUT OUTPUT
DELIVERYDELIVERY
QUALITYQUALITYPPEOPLEEOPLE
PPARTSARTS
PPLANTLANT
COSTCOSTPPROCESSROCESS
HOWINPUT OUTPUT
DELIVERYDELIVERY
Leaders add value by successfully controlling the
inputs – the 4 P’s
If the inputs are right the output is guaranteed
23. Why is there so much firefighting in a
typical day?
QUALITYQUALITYPPEOPLEEOPLE
PPARTSARTS
PPLANTLANT
COSTCOSTPPROCESSROCESS
HOWINPUT OUTPUT
DELIVERYDELIVERY
QUALITYQUALITYPPEOPLEEOPLE
PPARTSARTS
PPLANTLANT
COSTCOSTPPROCESSROCESS
HOWINPUT OUTPUT
DELIVERYDELIVERY
If the inputs aren’t standardised then there could be:
10 People variables x 10 Parts variables x 10 Plant
variables x 10 Process variables
10 x 10 x 10 x 10
How can you manage 10,000 possible outcomes?
?
24. Standards:
Effect on Variation and Quality
10x10x10x10
= 10,000
Possible
Outcomes
5x5x5x5
= 625
Possible
Outcomes
Current:
• Variation
• Errors
•Little control
• Reactive
Future
• Control
• Improved quality
• Predictability
• Prevention
25. From control into continuous
improvement
• The systems, people, equipment, product and all need to go from
control to habitual improvement
• Areas from clutter to clean
• Engineering from breakdown panic to predictive calm
• Process from fickle to dependable
• Product from changeable to consistent
• Shift management from reactive to proactive
• Continuous improvement from special effort to daily habit
10,000
Outcomes
5,000
Outcomes
1,000
Outcomes
250
Outcomes
Control Consistency Continuous
Improvement
Chaos
10,000
Outcomes
5,000
Outcomes
1,000
Outcomes
250
Outcomes
Control Consistency Continuous
Improvement
ChaosGaining
Control
Consistency
Continuous
Improvement
Habitual
Behaviour
26. The Golden Triangle
Creating Standards for
Operational Excellence
Standard Work
Standard description of a task or
process, which if followed
consistently, ensures the same output
Standard Management
Standard process to ensure
standards are being met
Visual Management
Make problems visible and
bring them to the attention
of the user.
Status within 10 seconds.
27. The Golden Triangle
Basis for daily error avoidance and
control
Standard Work
Visual ManagementStandard
Management
5SReject
Control
Daily
Maintenance
29. In Manufacturing there are 7
Traditional Types of NVA or Waste
•Waste of T ransport
•Waste of I nventory
•Waste of M ovement
•Waste of W aiting
•Waste of O verprocessing
•Waste of O verproduction
•Waste of D efects and Rework
30. 4 weeks
HOURS 1000 2000
AVERAGE
INVENTORY
INVENTORY
High Inventory Manufacturing
31. HOURS 1000
1.5 weeks
INVENTORY
Low Inventory Manufacturing
Has a positive impact on;
• Quality and scrap
• Engineering change introduction
• Margin
• Overtime & resources at month-end
• Capital investment
• Due date performance
• Improved forecast reliability
• Leadtime-
• Leadtime is proportional to inventory
36. Stuck in first gear and can’t get
traction!
“Lean production has dramatically lifted the
competitiveness of many manufacturing companies and the
value they deliver to customers.
Despite these triumphs, many firms I visit are stuck in first
gear on their initial lean efforts. They are trying to create
flow but can’t somehow get traction.
An overlooked and recurring pitfall that I’m seeing more
often is a lack of “basic stability” in operations.”
Art Smalley Lean Enterprise Institute
37. A poor business will get stuck in
first gear…
Time
Consistency Continuous
Improvement
Habitual
Behaviour
Performance
Gaining
Control
Getting
Ready
Stuck in first gear
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Journey Summary
• Get Ready - To understand the current state and implement actions to get
started
• Gain Control – To reduce surprises and firefighting in order to focus on future
improvement strategy
• Consistency - To deliver some quick wins, align by value streams, develop
the improvement infrastructure and up-skill middle management
• Continuous Improvement - To engage the majority in focused improvement,
achieve a revolutionary change, extend the scope to the supply chain and
develop a growth strategy
• Habitual Behaviour - To feedback all the positive improvement experience
into the re-design of equipment, systems and suppliers