Workshop A Performance Boosting Tools Reality Check: Are you a Lean, Mean Manufacturing Machine ? The Matrix: Performance Measurement System

Producing Profitability through Lean Manufacturing What is Lean Manufacturing ? Why should I adopt Lean Manufacturing ? How can I apply Lean Manufacturing ? Bus Info Flow Six Sigma SU TPM 5s Kaizan Value- added

What is Lean Manufacturing? A long-term philosophy to propel a box plant to higher profitability A business strategy that focuses on rapid continuous low-cost improvement in processes and productivity A tactical plan that integrates several tools into a complete package A relentless attack on waste using a set of tried and true tools and techniques

Why adopt Lean Principals ? Increase capacity Reduce inventories Reduce Cycle Times / Lead times Lower space/facility requirements Lower overall costs Improve employee moral through increased involvement Increase sales through focus on customer and value-added activities

Where did Lean Manufacturing come from? Lean Techniques are Not New James Womack & Daniel Jones –The Machine That Changed the World (1990) –Lean Thinking (1996) Toyota Production System (1950’s – 1970’s) –JIT / Kanban / SU Reduction / SOP / 5s / Flow Motorola ( ) –Six Sigma / Variation Reduction / Process Capability

Major Concepts 1. Waste Seven types Overproduction Waiting Material Movement Excess Inventory Excess Motion Defects Unnecessary Processing / Converting 2. Value Those things the customer wants and is willing to pay for. 3. Value Stream All activities required to design, order, produce and deliver a product or service.

Goal of Lean Manufacturing Focusing on the value stream, identify those things that create value vs. those that do not and relentlessly attacking waste.

Major Tools Value Stream Analysis –Identify Value-added vs. non-value added activities Six Kaizan Events –5s Housekeeping –Flow –Set-up reduction –TPM –Defect/Variation Reduction –Business Processes/Information

Value Stream Mapping Identifying Value Added vs. Non-value added Activities Product families = items/orders with a common process or machine routing Target each product family for improvement efforts

Kaizen Events Short burst of intense activity and effort (3-5 days) Biased toward action over analysis Consist of multi-functional team assembled to achieve a specific goal or solve a specific problem Focused on improving the value stream and achieving flow Managed with daily reviews to resolution Goal driven – Solving Problems and eliminating waste

Kaizen Event # 1 5s+1 Housekeeping –Sort –Set in order –Shine –Standardize –Sustain –+1 = Safety

Kaizen Event # 2 Flow – material, people and activities Macro Level and machine/dept level Lean Tools: –Spaghetti Diagram –Flow Charts

Kaizen Event # 3 Set-up Reduction Lean Tools: –“Pit Stop” Set-up mentality –Video Tape and Set-up Analysis –Internal vs. External SU activities

Kaizen Event # 4 TPM = Total Productive Maintenance Goal is to minimize downtime & maintain capability of equipment Lean Tools: –Develop Daily Operator PM and Maintenance PM –Develop equipment critical spare parts list –5s Program contributes toward TPM

Kaizen Event # 5 Defect / Variation Reduction –Six Sigma Tools Pareto Charts Histograms Process Mapping (KPIV, KPOV) Cause & Effect Analysis FMEA Capability Analysis

Kaizen Event # 6 Business Process / Information Flow –Design Process –Quotation –Order Entry –Manufacture Order –Shipping Order –Customer Feedback –Accounting / Administration

Keys to Successful Lean Manufacturing Education and Communication Employee Involvement & empowerment Create a culture tolerant of experimentation - allow people to successfully make mistakes Break the paradigm that Inventory is an Asset Incorporate Lean concepts into you culture and ongoing strategic plan – not a “project”

Are you a Lean Mean Manufacturing Machine ?