Making Lean Work in Your Company

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Making Lean Work
in Your Company
Presented by
Terry Norris

Lean Defined
Lean’s Origin
5 Principles / 8 Wastes / A3
Making Lean Work
Overview

Lean is an enterprise-wide strategy for achieving excellence…
...by creating value (from the customer's perspective)
…by creating a culture of continuous performance
improvement and working to eliminate ALL waste of resources
and time
…by creating high quality, stable processes and emphasizing
respect for people throughout the organization.
What is Lean?

Lean Production...
„Lean Production‟ is “LEAN” because it uses less of everything
compared to Mass-Production
Half the human effort in the factory
Half the waiting time for customers
Half the time to develop products
With far less than half the inventory
Result…
 Fewer defects and more variety for customers!
Ref: The Machine That Changed the World,
James P. Womack, Daniel T. Jones, Daniel Roos

Where did Lean come from?
Lean Philosophies / Methodologies

Forbes, 5-22-2012
• Lean is a methodology derived from
the Toyota Production System
• Brought to the states by Womack &
Jones 1990 (The Machine that Changed
the World).
The Toyota Production System

How Can They Give Their Secrets Away?
Why Does Toyota Let Competitors
Into their Plants?
Because What They Need to Learn
They Cannot See.

5 Principles of Lean

Value (from the customer's perspective)
Value Stream (map the steps in the value stream)
Flow (create a smooth flow)
Pull (the right amount pulled at the right time, no
more, no less)
Perfection (elimination of all waste in the value
stream)
The Five Principles of Lean

The 8 Types of Waste

Types of Waste
D - Defects
O - Overproduction
W - Waiting
N - Non-standard and Overprocessing
T - Transportation
I - Intellect
M - Motion
E - Excess Inventory

What is an A3?
A3 Thinking

A3 Thinking
PDCA
1. Business Case /
Problem Statement
Scope / Boundaries
2. Initial State
3. Target State
4. Gap Analysis
5. Develop
Countermeasures
6. Develop an Action
Plan
7. Confirmed State
8. Standardize, Sustain,
Start Over
PDCA
PDCA
PDCA
PDCA
PDDCA
PDCA
PDCA
50% Trained
100% On-Time
75% On-Time
98% Trained

Making Lean Work
Lean Transformations

Overview
• Lean is a Strategy
• Expectations
• Typical Results
• Tips for a Successful Transformation
• Pitfalls to Avoid
• Getting Started
• Final Thoughts

Significant Increase in:
- Productivity
- Usable Space
- Flexibility
- Employee Morale / Safety
- Customer Satisfaction
- The Bottom-Line!
Significant Decrease in:
- Lead times
- Work in Process
- Defects and Reworks
- Inventory
- Breakdowns and Changeover Times
What to Expect – The Positive

Examples of Lean Success Stories
Results of Successful Change

Setup Time Reductions at Wiremold
Equipment Type
Rolling mill
Ton press
P.M. punch press
Hole cut on mill 1228
2 1/2” extruder
Injection molder
Before
720
90
52
64
180
120
After
34
5
5
5
19
15
% Reduction
95%
94%
90%
92%
89%
88%
- Setup Times in Minutes
- Results from 1-Week Kaizen Events
Average Setup Reduction Time = 91%
Ref: The Lean Turnaround, Art Byrne

Lean Improvements at Wiremold
• Lead time dropped from 4 to 6 weeks to 1 to 2 days
• Productivity improved by 162%
• Gross profit improved from 38% to 51%
• Machine changeovers went from 3 per week to 20-30 per day
• Inventory turns improved from 3 times to 18 times
• Customer service improved from 50% to 98%
• Sales grew from $100 million to $400 million
• Enterprise value increased by 2467% (from $30 million to $770
million
Ref: The Lean Turnaround, Art Byrne

Lean Results in Various Industries
• Robins AFB: C-5 aircraft overhaul
– Reduced time from 339 to 160 days
– Mechanic travel time reduced by 60%
– Freed up one dock for additional workload
• Civil Engineers: Streamlined
Air Force design-build process
– Second pass: Reduced flowdays
from 1,046 to 599 days (42%)
• Filling Civilian Positions: Streamlined
portions of the end-to-end fill process
– Reduced time from 160 to 120 days
– AFPC increased serviced population 5,000
positions with no additional manpower
Shingo Prize
Only DOD Gold-
Level Winner

Lean Results in Various Industries
• Airport Terminal
– Designed CTK/MX Truck—saved
-- 150 man-hrs per mo
– Crew bus--saved $3100 + 230 man-hrs pr mo
– Eliminated multiple refuels--saved
-- 129-172 man-hrs per month
• TN Wheel Factory: SMED (Quick Changeover)
– First Practice Run: Assembly finished before
Paint; 1st Time in 23 Years!
– “Impossible” became possible in 1 ½ days.
• Aerospace Ground Equipment
– Saved 2.2 days per week with 17 vs 33 people
– $35K of equipment removed from process
– Walking reduced from 17 miles/wk to 0.5 miles
Lube
Look/Quick Fix
FLOW

What to Expect – The Challenges
Expect Resistance from all Levels

 We tried that before.
 Our place is different.
 That‟s not my job.
 It costs too much.
 We don‟t have the time.
 Runs up our overhead.
 Laws and Reg‟s say we can‟t.
 That‟s not our problem.
 I don‟t like the idea.
 Good idea but impractical.
 Not that again.
 It‟s too radical a change.
 We did all right without it.
 Let‟s form a committee.
 It won‟t work in our office.
 It can‟t be done.
 It‟s impossible.
 We‟ve always done it this way.
 Top management won‟t buy it.
 Don‟t rock the boat.
 Quit dreaming.
 If it isn‟t broke...
 We don‟t have the authority.
 It‟s a customer requirement...
Comments You‟ll Hear

Year-1 Year-2 Year-3
• Progress may seems slow
• 2 steps forward/1 step back
(which is okay)
• Major resistance
• Implementation errors
• Jury still Out
• Local areas of great progress
• Change/Improvements, the Norm
• Positive Momentum building
• People are Engaged
• Still gaining skills
• Compounding Improvements
• Demonstrating success
• Making Great Progress
Performance
Key Measures
Typical Lean Journey

Lean Tips for Success
• Lead the Transformation from the Top
- It is a people transformation (cultural change required)
• Build a core team of internal lean professionals
• Focus on People and Processes
- The goals (stretch goals) will take care of themselves
• Make it Mandatory

Transformation Pitfalls
• Senior management does not lead the transformation
• Internal lean professionals not supported
• Fear of failure; avoiding any risks
• Believing "hare lean" will beat “tortoise lean”

Initial Lean Transformation Steps
• Vision or Strategy Statement
• Communication Plan
• Roles and Responsibilities / Org Structure
• Tactical Plan
• Developing Internal Lean Capability
• Training Plan
• Annual Reviews

Once Ready…
1. Announce Vision
2. Provide Introductory Lean Training
3. Enterprise Wide Value Stream Analysis
4. Kaizen Events

Final Thoughts
• Announce in advance that no one will lose their job
because of Lean; Reduce any headcounts before
implementing Lean (if applicable)
• Along with the vision there will need to be a burning
platform
• Run 1-2 events each month for 3-5 years in each facility as
appropriate
• Lean is a journey versus a destination; a marriage versus a
dating

I. Lean Transformation
II. Targeted Improvements
III. Onsite Workshops
– Lean Green Belt Course (4-days)
– Root Cause Analysis (1-2 days)
– A3 Management (1-day)
– 5S + Visual Management (1-day)
– Single Minute Exchange of Dies (SMED), Quick
Changeover (2-days)
IV. Certification Programs
– Green Belt Certification
– Black Belt Certification
Services

Questions?

Making Lean Work in Your Company

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