This document provides several corporate examples of Lean implementation: - Kenworth Truck reduced lead time for custom trucks from 6-8 weeks to 3 weeks through techniques like upside-down assembly and ceiling-mounted tools. - A Lean firm doubled its product range while more than doubling productivity for 33.3% annual growth compared to a 3% industry average. - Freudenberg-NOK achieved rapid gains through thousands of small improvement events, increasing savings from $2 million initially to $31 million.

1. Corporate
examples
Corporate
Lean
examples

2. Was at 6-8 weeks typical industry lead time
- For ease of assembly, changed to
assemble chassis upside down
- assembly tools hung from ceiling so
workers don't have to bend down to get them
- all trucks are custom
- reduced to 3 weeks, and racing
toward a goal of two weeks lead time approx. 68% less
*Fortune. America's Elite Factories
Kenworth Truck Building Freight-Haulings Custom Cadillacs
By Gene Bylinsky. August 14, 2000

3. As mid 1970’s industry leader,
about 3% annual
productivity growth
compare with this Lean firm:
Doubled their product range in 3 years
while more than doubling (100%)
enterprise productivity =
33.3% annual productivity growth
providing large margin gains
*Leading the Lean Enterprise Transformation,
George Koenigsaecker. 2009

4. Scan in Jacobs chart p 24
*Leading the Lean Enterprise Transformation,
George Koenigsaecker. 2009
4

5. *Leading the Lean Enterprise Transformation,
George Koenigsaecker. 2009
5

6. Repeat Rapid Improvement Impact Freudenberg-NOK GP
600
550
500
450
400
350
# ppl
pc/person
sq. ft. util
300
250
200
150
1992
1993
*Leading the Lean Enterprise Transformation,
2nd Ed. George Koenigsaecker. 2009
aug
jan
jan
nov
apr
may
feb
100
50
0
1994
1995

7. 5000 employees
n/5 event pace
accelerating gains over time
Freudenburg NOK $ Savings in millions
35
30
Millions
25
20
15
10
5
0
200
1992
600
1993
1000
1994
1000
1995
1000
1996
1000
1997
1000
1998
1000
1999
1000
2000
1000
2001
# of Events,
Year
FNOK
1992
$ Savings in millions
Ave savings per event in thousands
1994
1995
1996
1997
1998
1999
2000
2001
200
# of events
1993
600
1000
1000
1000
1000
1000
1000
1000
1000
$2
$4
$7
$7
$7
$16
$19
$21
$30
$31
$10,000
$6,667
$7,000
$7,000
$7,000
$16,000
$19,000
$21,000
$30,000
$31,000
*Leading the Lean Enterprise Transformation,
2nd Ed. George Koenigsaecker. 2009

8. What is value?
has doubled
the availability
of parts
while decreasing delivery
time to customers by < ½
as well as reduced
their facility footprint.
*Pratt & Whitney’s Lean efforts are well documented.
For a detailed account see
Lean Thinking, 2nd Ed. Ch. 8 p151-188, 305-309
J Womack, D Jones. 2003
8

9. *Leading the Lean Enterprise
Transformation,
2nd Ed. George Koenigsaecker. 2009
9

10. Art Byrne – The Lean Turnaround
Started implementing Lean in a $30 million co.,
after 10yrs sold it for $770 million

11. Lean’s impact on Sales and Cashflow in companies:
The Business Case for Lean – Michael Balle

12. Had outperformed the S&P by over 8500%
over 20 years as of 2007.
Additional public company performance analysis please review:
A Wallstreet View of Lean Transformation – Cliff Ransom