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Competing in the Marketplace
1
“What factors are important to the customer?”
2
TIME: The single best indicator
of competitiveness
Customer Lead Time / Delivery Time
Working to reduce or minimize each of these times
can make your company more valuable to both its
internal and external customers.
Set-up or Change-over Time
Product Development Time
Manufacturing Cycle Time
3
Shrinking Lead Times
Order Lead Times Manufacturing Lead Times Delivery Lead Times
Manufacturing Lead Times
Order Lead Times Delivery Lead Times
Reducing the overall time from receiving the order to delivering the
product makes your company more responsive to the customer.
This can become the deciding factor when the customer makes
their selection.
As can be seen, manufacturing is only one part of the entire
process. Inputting, processing, and issuing orders is an area
for improvement, as well as, assembly, loading and delivery
to the customer`
4
Where’s the Time in Lead Time
This timeline represents an overall lead-time, with very little
time spent on adding value to the product.
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA)
1%
Improvement Efforts
Concentrated on reducing VA time,
with no attention given to NVA.
Non-Value Added Time (NVA)
99% of Total Lead time
VA
1/2 %
Results of Common Improvement efforts, did not improve
response time. VA time is reduced, but, the costs for those
improvements in lead time was substantial.
Common
5
Where’s the Time in Lead Time
NVA Time
95% of Total Lead time
VA
5%
When we look at attacking the NVA Activities in the Timeline
and compare that to the original timeline:
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA)
1%
This shows a 5X improvement in lead time
Great Job!!
Greatest Opportunities are actually here!
6
Different Types of Activities
Being able to tell the difference between NVA and VA
activities is an important step in the Improvement Process.
Value Added
Activity (VA)
An activity that changes raw
material to meet customer
expectations.
Non Value Added
Activity (NVA)
Those activities that take
time, or occupy space but do
not add to the value of the
product.
You must ask yourselves “Would you as a customer be
willing to pay for any NVA activity being performed to that
NEW 4x4 Pickup you just ordered?”
7
Some examples NVA Activities:
Walking Waiting on
machine cycle
Transporting
parts
Generating
useless reports
THE GOAL IS TO ELIMINATE THE
NON-VALUE ADDED ACTIVITIES.
Unnecessary
motion
Unnecessary
stock on hand
8
A definition:
Destroy, in our minds, the
concepts and techniques of
manufacturing that we
practice today.
Create a vision of what our
production system and
manufacturing techniques
should be.
Carry out that Vision by
breaking through the status
quo.
We must avoid the urge to
discover more sophisticated and
technological solutions to tasks
we shouldn’t be doing at all.
9
Basic Rules for Change
Keep an open mind to change
No such thing as a dumb question or idea
Avoid spending money (Capital expense should
be a last resort)
Think about how to do it, NOT why it can’t be done
Maintain a positive attitude
Don’t’ make excuses & question current practices
Just do it!!
Have Fun!!!
1
Steps on Team Development
Forming This is the development of a multi-functional
team with a variation of backgrounds and
knowledge
Norming Stage where the group agrees how to
operate as a team
Storming Open & honest discussion, also brainstorming
Performing Agreement on solutions & taking action
Adjourning Closing on the continuos improvement process
after 30 days
1
What is TAKT Time?
TAKT time is how many minutes or seconds are needed
to make one part when considering the daily volumes, to
be produced in that workcell and the total time available to
perform the job.
TAKT time is NOT the time it takes to manufacture the
product. It is based on customer demand.
Who is the customer?
The next operation
Customer orders
1
TAKT Time Calculation
Production Time Available / Period
Number of Required Units / Period
TAKT
Production Time Available / Period (one shift):
Breaks - 2 @ 10 minutes
Shift Time ( 8 hrs. )
Clean-up at end of shift
Production Time Available:
- 20 mins.
480 mins.
- 5 mins.
455 mins.
Units Required / Period (one shift):
10,500 Units Sold Monthly
21 Working shifts / month
27,300 secs.
or
500 Required units / shift
TAKT Time:
27,300 secs / shift
500 units / shift
54.6 secs.
1
The 5S Housekeeping Standards
First Step towards Continuos Improvement
The aim of 5S is to create an atmosphere to keep a clean,
organized, safe and efficient workplace for everyone.
The foundation for the practice of 5S, comes from a Japanese
program derived from these words, seiri, seiton, seiso, seiketsu
and shitsuke. The 5S’s are a conventional approach towards
maintaining and improving the work place. The following words
have been chosen for the 5S acronym’s.
Sort
Sustain
Sanitize (Safety)
Straighten
Sweep
1
Meaning of the 5S’s
Sort
Straighten
Sweep
(Scrubbing clean)
Examine everything at the workplace & identify
what is needed and what can be discarded
Organizing the way things are put away with
efficiency, quality, and safety in mind. Need to
decide where and how things should be put away
and what rules should be obeyed to insure that it is
maintained.
Sweeping, scrubbing and cleaning of the building,
machines, fixtures & tools so that all areas of the
workplace are neat & tidy. This leads to early
detection of mechanical problems before they
become major breakdowns. Machines cry!
1
Sanitize
(Safety)
Sustain
(Standardize)
Meaning of the 5S’s
Insuring that each workplace is properly
designed for safety. This is to protect every
member from the dangers during the
performance of their assigned tasks.
Developing the practice necessary to continually
participate in the 5S process. This requires that
each of the S’s become a personal habit. This
is the most difficult of the 5S’s, but it is the most
important factor in achieving long term success.
Establishing routines and procedures for
maintaining and improving on the first four (S’s),
incorporating visual management tools.
1
WASTE
1
Do MORE with LESS
Waste Productivity
Staffing Productivity
1
SHIFT MINDSET
CURRENT
THINKING
REQUIRED
THINKING
WASTE NOT DEFINED
REACT TO LARGE EXAMPLES
REACTIVE IMPROVEMENT
WASTE IS "TANGIBLE”
IDENTIFY MANY SMALL OPPORTUNITIES
-LEADS TO LARGE OVERALL CHAGE
CONTINUOUS IMPROVEMENT
WASTE
TYPES
OF
WASTE
Correction
Processing
Motion
Waiting
Inventory
Transportation
Over-
Production
1
1. Transportation - Transporting 1. Transportation - Carrying
farther than necessary or Tools to Point of Use
temporarily locating, filing,
stacking and moving parts
(people, paper, information) is
waste.
2. Correction - Doing something 2. Correction - Redo an Activity
over is waste. Because of Error
3. Overproduction - Generating 3. Overproduction - Number of
excess paper or information, or Copies
generating information or paper
too soon in a process is waste.
Definition Example
ELEMENTS OF WASTE
2
4. Motion - Unnecessary work 4. Motion - Tools in drawers
movements are a form of waste.
5. Waiting - Waiting for people, 5. Waiting - Meetings to start
paper and information is waste -
it stops work.
6. Inventory - Too much of 6. Inventory - Supplies
anything is waste.
7. Processing - this is waste in 7. Processing - Typed when
the process itself. Redundant handwritten would be
activities sufficient
Definition Example
ELEMENTS OF WASTE
2
Standards
Enforce
Inspect
.
Stabilize
Identify
Waste
Problem Solve
Standardize
• Process requires ongoing inspection and enforcement to
ensure “Standardized Work” is being followed
• Process does not improve automatically
- Following standards will only maintain, not improve, the process.
- Improvement focuses on the entire process.

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Competing in the Marketplace: How Reducing Lead Times Can Give You an Edge

  • 1. Competing in the Marketplace 1 “What factors are important to the customer?”
  • 2. 2 TIME: The single best indicator of competitiveness Customer Lead Time / Delivery Time Working to reduce or minimize each of these times can make your company more valuable to both its internal and external customers. Set-up or Change-over Time Product Development Time Manufacturing Cycle Time
  • 3. 3 Shrinking Lead Times Order Lead Times Manufacturing Lead Times Delivery Lead Times Manufacturing Lead Times Order Lead Times Delivery Lead Times Reducing the overall time from receiving the order to delivering the product makes your company more responsive to the customer. This can become the deciding factor when the customer makes their selection. As can be seen, manufacturing is only one part of the entire process. Inputting, processing, and issuing orders is an area for improvement, as well as, assembly, loading and delivery to the customer`
  • 4. 4 Where’s the Time in Lead Time This timeline represents an overall lead-time, with very little time spent on adding value to the product. Non-Value Added Time (NVA) 99% of Total Lead time Value Added Time (VA) 1% Improvement Efforts Concentrated on reducing VA time, with no attention given to NVA. Non-Value Added Time (NVA) 99% of Total Lead time VA 1/2 % Results of Common Improvement efforts, did not improve response time. VA time is reduced, but, the costs for those improvements in lead time was substantial. Common
  • 5. 5 Where’s the Time in Lead Time NVA Time 95% of Total Lead time VA 5% When we look at attacking the NVA Activities in the Timeline and compare that to the original timeline: Non-Value Added Time (NVA) 99% of Total Lead time Value Added Time (VA) 1% This shows a 5X improvement in lead time Great Job!! Greatest Opportunities are actually here!
  • 6. 6 Different Types of Activities Being able to tell the difference between NVA and VA activities is an important step in the Improvement Process. Value Added Activity (VA) An activity that changes raw material to meet customer expectations. Non Value Added Activity (NVA) Those activities that take time, or occupy space but do not add to the value of the product. You must ask yourselves “Would you as a customer be willing to pay for any NVA activity being performed to that NEW 4x4 Pickup you just ordered?”
  • 7. 7 Some examples NVA Activities: Walking Waiting on machine cycle Transporting parts Generating useless reports THE GOAL IS TO ELIMINATE THE NON-VALUE ADDED ACTIVITIES. Unnecessary motion Unnecessary stock on hand
  • 8. 8 A definition: Destroy, in our minds, the concepts and techniques of manufacturing that we practice today. Create a vision of what our production system and manufacturing techniques should be. Carry out that Vision by breaking through the status quo. We must avoid the urge to discover more sophisticated and technological solutions to tasks we shouldn’t be doing at all.
  • 9. 9 Basic Rules for Change Keep an open mind to change No such thing as a dumb question or idea Avoid spending money (Capital expense should be a last resort) Think about how to do it, NOT why it can’t be done Maintain a positive attitude Don’t’ make excuses & question current practices Just do it!! Have Fun!!!
  • 10. 1 Steps on Team Development Forming This is the development of a multi-functional team with a variation of backgrounds and knowledge Norming Stage where the group agrees how to operate as a team Storming Open & honest discussion, also brainstorming Performing Agreement on solutions & taking action Adjourning Closing on the continuos improvement process after 30 days
  • 11. 1 What is TAKT Time? TAKT time is how many minutes or seconds are needed to make one part when considering the daily volumes, to be produced in that workcell and the total time available to perform the job. TAKT time is NOT the time it takes to manufacture the product. It is based on customer demand. Who is the customer? The next operation Customer orders
  • 12. 1 TAKT Time Calculation Production Time Available / Period Number of Required Units / Period TAKT Production Time Available / Period (one shift): Breaks - 2 @ 10 minutes Shift Time ( 8 hrs. ) Clean-up at end of shift Production Time Available: - 20 mins. 480 mins. - 5 mins. 455 mins. Units Required / Period (one shift): 10,500 Units Sold Monthly 21 Working shifts / month 27,300 secs. or 500 Required units / shift TAKT Time: 27,300 secs / shift 500 units / shift 54.6 secs.
  • 13. 1 The 5S Housekeeping Standards First Step towards Continuos Improvement The aim of 5S is to create an atmosphere to keep a clean, organized, safe and efficient workplace for everyone. The foundation for the practice of 5S, comes from a Japanese program derived from these words, seiri, seiton, seiso, seiketsu and shitsuke. The 5S’s are a conventional approach towards maintaining and improving the work place. The following words have been chosen for the 5S acronym’s. Sort Sustain Sanitize (Safety) Straighten Sweep
  • 14. 1 Meaning of the 5S’s Sort Straighten Sweep (Scrubbing clean) Examine everything at the workplace & identify what is needed and what can be discarded Organizing the way things are put away with efficiency, quality, and safety in mind. Need to decide where and how things should be put away and what rules should be obeyed to insure that it is maintained. Sweeping, scrubbing and cleaning of the building, machines, fixtures & tools so that all areas of the workplace are neat & tidy. This leads to early detection of mechanical problems before they become major breakdowns. Machines cry!
  • 15. 1 Sanitize (Safety) Sustain (Standardize) Meaning of the 5S’s Insuring that each workplace is properly designed for safety. This is to protect every member from the dangers during the performance of their assigned tasks. Developing the practice necessary to continually participate in the 5S process. This requires that each of the S’s become a personal habit. This is the most difficult of the 5S’s, but it is the most important factor in achieving long term success. Establishing routines and procedures for maintaining and improving on the first four (S’s), incorporating visual management tools.
  • 17. 1 Do MORE with LESS Waste Productivity Staffing Productivity
  • 18. 1 SHIFT MINDSET CURRENT THINKING REQUIRED THINKING WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT WASTE IS "TANGIBLE” IDENTIFY MANY SMALL OPPORTUNITIES -LEADS TO LARGE OVERALL CHAGE CONTINUOUS IMPROVEMENT WASTE TYPES OF WASTE Correction Processing Motion Waiting Inventory Transportation Over- Production
  • 19. 1 1. Transportation - Transporting 1. Transportation - Carrying farther than necessary or Tools to Point of Use temporarily locating, filing, stacking and moving parts (people, paper, information) is waste. 2. Correction - Doing something 2. Correction - Redo an Activity over is waste. Because of Error 3. Overproduction - Generating 3. Overproduction - Number of excess paper or information, or Copies generating information or paper too soon in a process is waste. Definition Example ELEMENTS OF WASTE
  • 20. 2 4. Motion - Unnecessary work 4. Motion - Tools in drawers movements are a form of waste. 5. Waiting - Waiting for people, 5. Waiting - Meetings to start paper and information is waste - it stops work. 6. Inventory - Too much of 6. Inventory - Supplies anything is waste. 7. Processing - this is waste in 7. Processing - Typed when the process itself. Redundant handwritten would be activities sufficient Definition Example ELEMENTS OF WASTE
  • 21. 2 Standards Enforce Inspect . Stabilize Identify Waste Problem Solve Standardize • Process requires ongoing inspection and enforcement to ensure “Standardized Work” is being followed • Process does not improve automatically - Following standards will only maintain, not improve, the process. - Improvement focuses on the entire process.