1. Work In Progress Queensland

2. TODAY’S AGENDA This is your meeting….. 9.00amSafety Brief (Site representative) 9.05amIntroduction to LEAN and 5S principles - Presentation by Gary Practical application of 5S - Presentation by XXXX Representative 10.30amMorning Tea 10.50am Factory Tour - High lights of the 5S change in XXXX 12.15pmLunch 12.45pmLEAN & 5S Workshop - Discovery and documentation of what we have learnt 2.00pm Close

3. Lean Manufacturing & 5S

4. Origins of Lean? FW Taylor’s theories of Scientific Management Henry Ford’s mass production and moving line Taichi Ohno visit to the US and invention of Just In Time Toyoda San applied learning from his loom plants to car production - JIDOKA Toyota developing moving lines, standardised work and waste identification Toyota developing a system called ANDON to stop the line and fix if there is a concern Shingo invents a method called SMED (Single Minute Exchange of Dies) Toyoda San Jnr & Taichi Ohno develops TPS (Toyota Production System)

5. Toyota Production System (TPS) Standardization HeijunkaTakt5S – Visual WorkplaceTPM Quick Change Over Single Piece Flow Pull Poka Yoke Andon Autonomation Flexible and Motivated People - Kaizen Best Quality, Lest Cost, Shortest Lead Time Company Growth Eliminating waste time Building quality into processes

6. What is Lean?  A leadership approach &  A management philosophy &  A set of tactical methods (Tools)  That, as a complete system Creates and sustains: Lower - waste, cost, cycle time, absenteeism, staff turnover Higher - capacity potential, quality, employee ownership and commitment Improved – safety, morale, environment and measurement of key processes

7. LEAN Tools A model implementation is like building a house …… Start with the foundations Progressively work on building quality into the products and processes Ensure that processes are developed to eliminate waiting and queuing Through effective education, involvement and leadership the people have the capability to make this happen and develop a culture for continuous improvement

8. LEAN Foundations Start with the foundations Standardisation Think of standardisation as embedding what you have developed so far in order to provide a solid base - “Standardisation is your best of today applied consistently” Types of standardisation Safety Environment Quality Procedures Specifications Work practices Heijunka-Technique of achieving even output flow by coordinated sequencing of small production batches throughout the manufacturing line/process. Takt-Adjustable time unit used to synchronize the rate of production with the rate of demand. TPM-Metholody designed to ensure that every machine in a production process always performs its required task and its output rate is never disrupted. 5S – Visual workplace (subject of today)

9. LEAN Pillars Quick Change Over-Can also be referred to as Single Minute Exchange of Dies (SMED) Reducing the amount of downtime it takes to move from one product/process to the next. Single Piece Flow-Very small or single production runs versus large batch mentality, allowing significant flexibility to meet market demand Pull-Manufacturing system where production is based on market demand not manufacturing capacities (Push). Poka Yoke-Lean approach to 'mistake proofing' in all aspects of the business. It employs visual signals that ensure errors clearly stand out, or devices that stop an assembly line if a part/process is missed. Andon-A visual production control (usually a display) that continuously shows changing status of the production line and alerts if there is a problem. Autonomation-Enables machines to work harmoniously with their operators by giving them the 'human touch.' Called Jidoka in Japanese, it employs automatic and semi-automatic processes to reduce physical and mental load on the operators. Ensure that processes are developed to eliminate waiting and queuing Progressively work on building quality into the products and processes

10. LEAN Continuation Kaizen-Japanese term for a gradual approach to ever higher standards in quality enhancement and waste reduction or elimination, through small but continual improvements involving everyone from the chief executive to the shopfloor. Volkswagon Factory Germany

11. Lean Manufacturing – 5S

12. The objectives of 5S A workplace organisation tool To eliminate waste from uncontrolled processes. A housekeeping tool A process which engages people Leads to the Visual Factory Requires organisational discipline to maintain

13. What is 5S ? SeiriSortRemove items not required for current production SeitonSetPut order into workplace SeisoShineClean, paint, eliminate SeiketsuStandardizeMake routine best practice ShitsukiSustainDiscipline to maintain

14. Lean Manufacturing – 5S SORT

15. Sort – Sort – What is required? Obsolete stock Reject / defective material Unused plant & equipment Old documentation Accumulation of components Raw materials WIP Needed tools, jigs & equipment Current paperwork / manuals

16. Lean Manufacturing – 5S SET

17. Set in Order / Straighten Organisation of the work place Visual orderVisual control Ergonomic considerations Layout considerations A place for everything and everything in it’s place

18. Visual Order Tools Materials Information Near point of use In order of use Near point of use Visual Control Required to do job Highlight performance

19. Lean Manufacturing – 5S SHINE

20. Shine Cleaning Painting for effect and control Lighting Eliminating sources High visual impact

21. Shine – Cleaning Cleaning of machinery Take a close look – Inspection Earlier detection of faults Better machine reliability

22. Shine - Paint for Effect/Control Lines vs areas High usage vs remote Operator discretion Wear factors Quality of paintwork – set the standard before the work starts

23. Shine – Painting for Effect

24. Shine – Painting for Control

25. Shine - Lighting Commensurate with activities Importance of outside lighting Potential savings

26. Shine – Eliminate sources Eliminate process Contain Reduce Streamline clean up tasks Better access Better tools Better methods

27. Shine – Summary Cleaning and Inspection Form a team, start with a piece of plant, clean & inspect, fix defects, restore like new Paint for Effect and Control Lighting – review Eliminate source – Identify, prioritize, develop solutions

28. Lean Manufacturing – 5S STANDARDISE

29. Standardisation Basis for Improvement Standardized work practices make continuous improvement possible If everyone does things differently how can we expect to improve the process! SP CD

30. Three aspects of Standardisation The standard to be achieved The Method – How it is to achieved? 1. The sequence of tasks 2. The tools to be used 3. Frequency Who is responsible and when

31. Lean Manufacturing – 5S SUSTAIN

32. Sustain Changing behaviour New culture Sustain Making the new behaviour a habit

33. Sustain “Activities required to maintain the focus and improve the 5S Program” 5S Scoreboard Audits by team, by peers and by management Scoring the audits and monitoring progress Photo audits and the “Wall of Shame” Management by walking around Leadership – Never walking past something that is not acceptable

34. Lean – 5S Key points from today Breakaway group activity

35.  Company outline  The company has recently gone through a restructure due to market conditions, the board have directed that cost and overall competitiveness must be improved longer term to ensure the companies survival. The route management has decided on is to improve the business through a competitive manufacturing model. A key point highlighted by the board is that the facility is a mess with nothing in it’s place and has been the way for some time now, there have been several attempts to clean it up for special events, but nothing seems to last.  Project  The board has approved the competitive manufacturing strategy but has requested a short term bullet point plan outlining the first steps of the strategy with a view to getting the business focussed and implementing 5S.  Your role today is to develop that short term strategy and present to the board…. Consider  Are the building blocks in place for 5S?  How can we make the changes stick?  Is there any short term wins?  What other hurdles will we face? Exercise (Group Activity 30 mins & presentation)

36. Key Points From Today High accountability Knowledge of 5s Visual management tools Time allocation Long term vision required Team morale Quick wins Sense of urgency (empowering) Support structure Engagement at all levels Ownership in work areas Endurance/tenacity What good looks like An appropriate budget set

37. Key Points From Today Training – commitment Up front planning Foundations in place Rewards and recognition program (not financial) Measure results Positive recognition (timeliness) Genuine Leadership commitment Audit and monitor

38. Team “Company X” Workshop Notes Senior leadership workshops “LEAN” Lean principals and why - burning platform Shop floor – history past failures Budget - timeline (5-10 yrs) Resource requirements Develop total plan with Lean expert as reference point Steering group Pilot site program Risk – “best bang for buck” Communication plan and change management plan Launch event Tools in place – champions on board Pilot program Floor training Short term wins Sustain plan

39. Team “Maroon Angels” Workshop Notes Gain leadership commitment Define vision Development plan and deployment Budget /schedules Training and education ID Quick win opportunities Determine process partner(s) Team structure Team buy in and empowerment Reward recognition

40. Team “Gold” Workshop Notes What went wrong with other implementations? Steering committee – knowledge/consultants Costs/budget/time Develop role out plan Communicate the plan to all employees including culture change Identify the area for the role out Train area employees Get middle management/supervisor/employee buy in Role out Audit/ measures Scheduled DT for measures analysis

41. Lean Leaders Program Cert IV in Competitive Manufacturing

42. Delivered on-site rotating between participating businesses 1 day a week for 10 weeks Program Sponsor for each site Each site is asked to provide a sponsor to assist participants if they encounter roadblocks. Assessment Tasks The program is designed for each week to build upon the preceding week and develop the participants understanding of competitive manufacturing concepts. They are requested to apply them to a focus area in your business. Flexible Assessment The majority of tasks make use of templates which teach a standardized and structured approach to improvement. Participants are welcome to use your tools and template instead and to submit other evidence of current competency where appropriate rather than generate new evidence. Lean Leaders Program Cert IV in competitive Manufacturing

43. Upon completion of the course participants will have covered off on the following components. Lean Concepts Introduced Application of tools in own environment Understanding waste Understanding value stream management Soft Skills and Engagement Understanding self and others Performance Management Conflict Resolution Coaching and mentoring Strategy Cascade and Performance Scoreboards Converting strategy into tactical action plans Simple project management strategy for action plans Collecting and using data to make improvement decisions Harnessing visual management and competition to improve performance Leading team and performance management using scoreboards The 7 Quality Tools and Structured Problem Solving Understanding 7 Quality Tools Basic Problem Solving Skills 5 Whys and A3’s Root Cause Analysis Lean Leaders Program Cert IV in competitive Manufacturing

44. Mistake Proofing Cost of Defects 6 Mistake Proofing Principals The 4 elements of Zero quality control Poka-Yokes Quick Changeover and OEE Inventory Management Defining set up time Eliminating Changeovers Developing a quick changeover plan Facilitating Improvement Teams Identifying constraints True Kaizen – everybody, everyday Time and Resources Sustaining Improvement Long Term Creating a CI culture Standard work instructions Keeping standards relevant Audits Visual Control Lean Leaders Program Cert IV in competitive Manufacturing