Company's need to stop looking into the crystal ball for a new concept or a magic wand to help them achieve excellent. There is a need to return to the basics of sound management and perfect process. We have all the tools we need let's get going.

1. 1
21ST
CENTURY
MANUFACTURING “NOT
WITHOUT THE BASICS”

2. 2
EVOLUTION OF MANUFACTURING
PROCESSES, SYSTEMS AND TOOLS
• 1950-1960 – Manual systems began migrating onto the
fist computers, Order Point, Min-Max, EOQ, Scheduling
Boards migrated into the first MRP systems
• 1970-1980 – Computer systems became more
sophisticated (DBMOP, COPICS), MRP became MRPII
• 1990-2009 – Introduction of complex ERP systems,
Internet, Extranet, new tools Lean, SCM, Six Sigma,
Kanban, Kaizen, VMI, etc.

3. 3
DURING THIS EVOLUTION PROCESS,
SYSTEMS AND TOOLS WERE BEING
IMPLEMENTED
• New concepts were being introduced
• Companies invested in education and training
• Manufacturing came out of the closet
• Investment in Technology was being made

4. 4
MANUFACTURING SEEMS TO HAVE A
COMMON GOAL
• We were all in it together
• Learning the new tools and applying these
techniques
• Manufacturing began to have a common
language
• The Basics were being implemented in
companies from small to large

5. 5
THE FUNDAMENTAL BUILDING BLOCKS
(BASICS)
• Bill of Materials
• Inventory Management
• Shop Floor Control (Routings)
• Formal Purchasing
• Master Production Scheduling
• Material Requirement Planning
• Capacity Planning
• Forecasting
• Production Control
• Material Management

6. 6
THE BASICS REQUIRED
• Accuracy that approaches 100%
• Detailed and continuous training and
education
• Accountability
• Management Desire

7. 7
THIS EVOLUTION HAS NEVER STOPPED
• New systems, processes and tools
exist today that have been developed
to meet the demands of a very complex
manufacturing environment

8. 8
THE NEW ENVIRONMENT
BRINGS
• Challenging Global Competition
• Tremendous Cost Pressures
• Environmental Issues
• Fast Paced Technology Change

9. 9
WORK FORCE REDUCTION
Due To Cost Pressures Companies
Have Been Forced To Reduce Their
Workforce
“Few Skilled Employees Wearing Many
Hats”

10. 10
EDUCATION AND TRAINING
Companies have drastically cut back
on the amount they spend for
education and training

11. 11
KNOWLEDGE DRAIN
• Continued employee drain starting in the
60’s and continuing today at an alarming
pace.
• This is leaving a large knowledge void
especially when it comes to the basics

12. 12
TO COMPETE TODAY,
MANUFACTURING MUST FIND A
WAY TO EMBRACE AND
IMPLEMENT 21ST
CENTURY
SYSTEMS, TOOLS AND
PROCESSES

13. 13
21ST
CENTURY TOOLS AND PROCESSES
• LEAN MANUFACTURING
• LEAN SUPPLY CHAIN MANAGEMENT
• SIX SIGMA
• ERP
• MIX MODEL SCHEDULING
• KANBAN
• VMI
• VALUE MAPPING
• S&OP
• DEMAND MANAGEMENT

14. 14
DESIRE TO CHANGE
In most cases we have found that the
driving reason for a company to
embrace new tools and systems is
when their business is facing a major
threat.

15. Formula for Change
x x
Vision
of
Future
Discontent
with
Present
Path
of
Low Risk
Equals
CHANGE

16. 16
THE CHALLENGE
• Implementation of advanced
• Systems
• Processes
• Tools

17. 17
ROAD BLOCKS
The Basic Systems, Processes and
Tools cannot support the desired
change to 21st
Century thinking.

18. 18
REASONS FOR THE ROAD BLOCKS
• Core competencies have eroded over time
and cannot support new thinking without
major improvement.
• Core competencies were never in place or
accurate. (Company operating on manual)
• Management and workforce desire does
not match need.

19. 19
REQUIREMENTS FOR IMPLEMENTING
21ST
CENTURY TOOLS
1. Well trained workforce (APICS Trained and Certified).
2. The Basics in Place and being used to run the
business.
3. Accurate Data Base (BOM’s, Routings, Inventory).

20. 20
REQUIREMENTS (CONT).
4. Basic workflows in place
• Forecasting
• Master Production Scheduling
• MRP
• Inventory Management
• Shop Floor Control
• Capacity Requirements Planning
• Purchasing
4. Optimization of your Operating Systems

21. 21
EDUCATION AND TRAINING REQUIRED
• APICS Basics
• Supply Chain Certification
• Team Building
• Systems Specific
• Applying The Tools
• Six Sigma
• ?

22. PUT THE BASICS TO WORK
• Lean Tools and Processes
• Lean Concepts from Order to Cash
• Lean Accounting Let Finance lead the way to the money
• Lean Supply Chain Management
• Lean ERP (Optimize Your ERP Implementation)
22

23. LEAN HOUSE WITHOUT WASTE
Customer focused – Inspired people – Community – Financial success
Reduce inventory, Increase thru-put, Reduce operating expense
Waste Elimination thru Continuous Improvement
5-S Value Stream
Mapping
Pull
Production
Kanban Visual
Workplace
Cellular
Processes
Single Piece
Flow
Set up
Reduction
Multi-skilled
Workers
Standard
Work
Variation
Elimination
Error
Proofing
Total Productive
Maintenance
Lean
Training
Reward
Mechanisms
Balanced
Scorecard
Design For
Manufacture
Quality Function
Deployment
Supplier
Certification
Recruiting
& Initiation
Thinking
Processes
Problem
Solving
Communication
Tools
Level
Loading
Lean
Accounting
Results
Core values
Lean focus
Value-
Added
Mgmt.
Just-
In-
Time
The 5 pillars
HR Systems Mgmt. Behavior Communication TrainingEnablers
Lean Cycle
Lean Tools
Cost  Quality  Delivery
Flexibility  Time  Service
 Safety  Morale
Total
Quality
Mgmt.
Emp.
Involve-
ment
Supply
Chain
Mgmt.

24. ELIMINATION OF THE 7 WASTES
1. Waste of over-production
– Quantity
– Timing
2. Waste of waiting (delay)
– Leveling of production flow
– Line balancing
– Lack of parts
– Machine downtime
3. Waste of transportation
– Improve plant layout
– Decrease distance
– Improve method
4. Waste of process itself
– Should we produce these products?
– Is this the best way?
– Use of value engineering, value analysis

25. ELIMINATION OF THE 7 WASTES (cont.)
5. Waste of stock
– Small lots
– SMED
– Inventory is costly
– Space reduction
6. Waste of motion
– Have parts nearby
– Arm's length
7. Waste of making defective products
– Prevention
– Poka-yoke
– Find it when made
– Self-inspection
– Successive inspection
– Process capability

26. LEAN/AGILE MANUFACTURING
FACTORY FLOW CORE PRINCIPLES
1. Everything moves within four hours
2. If the downstream center can't use it – Don’t do it!
3. Everything moves to point of consumption
4. Eliminate steps in process
5. No paperwork
6. No material handling
7. No labor reporting
8. No computer transactions/systems
9. Assume "pipe line" flow (no backflow)
10. No inspection or testing (robustness)

27. LEAN/AGILE MANUFACTURING
FACTORY FLOW CORE PRINCIPLES (cont.)
11. No subassemblies
12. Carrier control (robustness)
13. All parts and processes under SPC control
14. No holding containers
15. Direct ship from last operation
16. Direct receipt for first operation
17. No inventory
18. Standardized processes
19. Standardized components
20. Standardized tools
21. Universal packaging
22. Universal assembly lines
23. Universal equipment

28. LEAN SCHEDULING
THE ADVANCED PLANNER’S ROLE IN THE
LEAN MIXED-MODEL SCHEDULING PROCESS
1. Prepare ABC analysis
2. Combine like items (product family - customer families)
3. Identify business rules for customer service levels
4. Develop inventory and shop floor philosophy
 Lead time  Lot sizes  Safety stock
5. Communicate with supply chain
6. Develop setup matrix
7. Develop order launch rules (priority planning)
8. Develop manufacturing loading strategies
 Certain products to certain lines
 Standard setup tools for "A" items
 Load leveling/final assembly scheduling rules
9. Develop customer allocation matrix
10. Load software order modifiers
11. Document all rules
12. Manage all exception messages
13. Post implementation review (quarterly)

29. ABC ANALYSIS OF ADVANCED
MANUFACTURING STRATEGIES
Primary Purpose
• Inventory philosophy
• Customer service philosophy
• Manufacturing strategy (mixed-model matrix)
• Expediting or priority planning strategy
• Purchasing strategy
• Distribution strategy
Inventory
Class
Dollar
Volume
Number of
Units
“A” 80% 20%
“B” 15% 30%
“C” 5% 50%

30. LEAN SCHEDULING
THE ADVANCED PLANNER’S ROLE IN THE
LEAN MIXED-MODEL SCHEDULING PROCESS
1. Prepare ABC analysis
2. Combine like items (product family - customer families)
3. Identify business rules for customer service levels
4. Develop inventory and shop floor philosophy
 Lead time  Lot sizes  Safety stock
5. Communicate with supply chain
6. Develop setup matrix
7. Develop order launch rules (priority planning)
8. Develop manufacturing loading strategies
 Certain products to certain lines
 Standard setup tools for "A" items
 Load leveling/final assembly scheduling rules
9. Develop customer allocation matrix
10. Load software order modifiers
11. Document all rules
12. Manage all exception messages
13. Post implementation review (quarterly)

31. A B C D E F G H
(BxC) (.5xE) (BxF) (A÷Ex4)
# of
Items
% of
Total
Weeks
Supply
Safety
Stock
Safety
Stock
Weighted
Lot Size
Weeks
Supply
Ave
Cycle
Stock
Lot
Size
Weighted
# of
Setups
Per Month
A ITEMS 50 80% 2.0 1.6 1 .5 .4 200
B ITEMS 500 15% 4.0 .6 4 2 .3 500
C ITEMS 1000 5% 8.0 .4 8 4 .2 500
TOTALS 2.6 .9 1200
MIXED-MODEL MATRIX
TOTAL 3.5 WEEKS OF INVENTORY

32. LEAN SCHEDULING
THE ADVANCED PLANNER’S ROLE IN THE
LEAN MIXED-MODEL SCHEDULING PROCESS
1. Prepare ABC analysis
2. Combine like items (product family - customer families)
3. Identify business rules for customer service levels
4. Develop inventory and shop floor philosophy
 Lead time  Lot sizes  Safety stock
5. Communicate with supply chain
6. Develop setup matrix
7. Develop order launch rules (priority planning)
8. Develop manufacturing loading strategies
 Certain products to certain lines
 Standard setup tools for "A" items
 Load leveling/final assembly scheduling rules
9. Develop customer allocation matrix
10. Load software order modifiers
11. Document all rules
12. Manage all exception messages
13. Post implementation review (quarterly)

33. LEAN JOB SEQUENCING
SETUP/CHANGEOVER MATRIX (HOURS)
EXAMPLES:
Sequence: D - A - C - B - E
S/U hours: 10 + 4 + 4 + 2 = 20 HOURS
Sequence: A - B - D - E - C
S/U hours: 1 + 1 + 3 + 3 = 8 HOURS
FROM
TO A B C D E
A - 3 1 10 2
B 1 - 4 2 4
C 4 6 - 4 3
D 2 1 3 - 6
E 3 2 2 3 -

34. KAIZEN
KAIZEN: KAIZEN means improvement. Moreover it means
continuing improvement in personal life, home life, social life, and
working life. When applied to the workplace KAIZEN means continuing
improvement involving everyone – managers and workers alike.
Policy Deployment: the process of implementing the policies of a
KAIZEN program directly through line managers and indirectly through
cross-functional organization.
TQM (Total Quality Management): organized KAIZEN activities
involving everyone in a company – managers and workers – in a totally
integrated effort toward improving performance at every level. This
improved performance is directed toward satisfying such cross-
functional goals as quality, costs, scheduling, manpower development,
and new product development. It is assumed that these activities,
ultimately, lead to increased customer satisfaction.

35. TYPICAL KAIZEN BLITZ
1. Education
 KAIZEN
 Lean
 Blitz process
 One piece flow
 5S
 Takt time
1. Form into teams
 Team training
1. Review target area
 Tour
 Process instructions
 Blueprints
1. Clean area
 Floors
 Machines
 Cabinets
Day One:

36. Start cell designs
1. Brainstorm flow (type of machines)
2. Identify utilities
3. Identify tooling
4. Identify inventory (signaling)
5. Identify type of parts (SMED)
6. Identify inbound and outbound suppliers and
customers (carrier control)
TYPICAL KAIZEN BLITZ
Day Two:

37. Rough out new cell design
1. Machine and bench placement
2. Tool and fixture placement (5S)
3. Utility drops
4. Hand tool storage
5. Kanban squares (size carriers)
6. New setup reduction methodology
7. Chalk up floor
Some teams “split up” into sub teams
TYPICAL KAIZEN BLITZ
Day Three:

38. 1. Move machines and connect
2. Move tools and fixtures onto/into position
3. Move inventory into Kanban areas
4. Practice “rapid” setup/changeover
5. Run cell
6. Start documentation
7. Painting
 Machines
 Lines on floor
 Etc.
TYPICAL KAIZEN BLITZ
Day Four:

39. 1. Realign cell
2. Make changes/adjustments, etc.
3. Install sustaining processes
 Education/training
 Documentation (step-by-step)
 Measurements
 Control boards
 Disciplines
 Safety
3. Final cleanup
 Touch up, painting etc.
3. Final presentation
4. Victory dinner
TYPICAL KAIZEN BLITZ
Day Five:
 Refine  Refine  Refine

40. 40
LETS DISCUSS THE FOLLOWING:
• Lean Manufacturing
• Supply Chain Management
• Vendor Managed Inventory
• Kanban
• Six Sigma

41. 41
DISCUSSION (CONT)
• ERP Implementation
• Back Flushing
• Purchasing Portals
• Capacity Planning

42. 42
PATH FORWARD
1. This begins with desire, without desire
change will not take place.
2. Develop internal champions and teams
that will work on optimizing the basics
3. Develop an education and training matrix
by employee

43. 43
PATH FORWARD (CONT)
4. Review all business rules
5. Review and update all order modifiers
6. Implement Inventory, Bill of Material and
Routing, and Cycle Counting
7. Value Map your existing systems and
bench mark against 21st
Century best
practices

44. 44
SUMMARY
• To Meet The Competitive Challenges
That Face Manufacturing Companies In
The 21st
Century, It Is Critical That We
Continue To Evolve And Embrace
Change. This Change Can Only
Happen If Its Built On A Solid
Foundation Of The Basics.

45. THERE ARE TWO
WAYS TO GET ON
TOP OF AN
OAK TREE
YOU CAN CLIMB
IT,
OR
YOU CAN SIT
ON AN ACORN