1. Crafting Your Lean Transformation ----------------------------
September 29, 2016
Today, we are here to talk about lean transformation programs.

2. Lean: the systematic elimination of waste

3. Sustainable Organization Identify Value Streams
5 Principles of Lean
Current
Position
Sustainable Organization
Seek Perfection
Create Flow
Leverage Pull
Principles are fundamental truths.
They are not steps.
Specify Value
Identify Value Streams

4. 1. Specify Value
The first principle is to specify value

5. Value Add Business Value Add Non-Value Add
To specify value, we need to first think about these three categories.
Value Add, Business Value Add, and Non-Value Add.
Let’s look closer at each one…
Business Value Add
Non-Value Add

6. Most Processes Have All 3B V N

7. 2. Identify Value Streams

8. Types of Value Streams
All activities (value added, business value added, and non-value added) required to bring:
A product from materials to the point of use by the customer
A service from supplies to solving the need of a customer
An idea from concept to implementation

9. Value Stream Mapping

10. 3. Create Flow
The third principle is to create flow.

11. seven types of waste Motion Over production Defects Movement Waiting
Inventory
Poor processing

12. 4. Leverage Pull
The fourth principle is to leverage pull.

13. True Demand

14. 5. Seek Perfection
The fifth principle is to seek perfection.

15. Kaizen Kai: to take apart Zen: to make good Kaizen is Japanese.
It is often thought of as continuous improvement.

16. Kaizen Blitz Blitz is German for lightning fast.
Kaizen Blitz are short 3 to 5 day events with a 30 day hit list. You complete the hit list and the event is a success.
Kaizen Blitz events will be the key to success for lean transformations.
Issue:
You still need a big picture project plan to guide you on the 18 month+ lean program.
Kaizen blitz events are assigned based upon the needs of the overall project.

17. Seeking What?

18. New Products, Supply Chain Mgmt, & Support Sustainable Organization
Supplier
Relationship
Mgmt
Customer
Operations
New Products, Supply Chain Mgmt, & Support
Leadership
Knowledge
Teamwork
Sustainable Organization
This is our model of a sustainable organization.
Be brief:
Discuss the 4 elements of a sustainable organization
And the 3 pillars of support”
Leadership includes alignment of roles and responsibilities
Knowledge includes education and training
Teamwork includes engagement

19. Lean Transformation Program
Project 1
Project 3
Project 2
Project 4
Project 5
Project 6
Project 7
Project 8
Project 9
Project 10
Launch
Step Back to Reflect
Assess Culture and Lean Community Participation

20. Ramp Up Projects Project 1 Project 3 Project 2 Project 4 Project 5

21. Rubadue Wire
Leveraged value stream mapping and kaizen blitz events to eliminate waste in a bottleneck production area:
Improved customer delivery by 30%
Increased operator output by 40%
Reduced rework by 25%
Reduced returns by 60%
Reduced lead time by three weeks
Eliminated overtime
This slide shows the results Rubadue Wire realized through the implementation of a CLM project by one of their employees.
Their project utilized value stream mapping and kaizen blitz events to improve performance of a constraint work center, resulting in:
30% improvement in customer service
25% reduction in rework
Reduced lead times
And eliminated all overtime
“Our lean implementation is an ongoing process that will truly allow us to meet our potential.” – Sean Toland, Certified Lean Master, Rubadue Wire

22. Wolf Robotics
Leveraged value stream mapping and collaborating with suppliers to reduce lead times and improve service:
Reduced lead time from 16 to 24 down to 8 weeks
Reduced inventory from $250,000 to zero
Improved supplier relationship management
Improved component tracking
Increased revenue by $2,500,000 through shorter lead times
For Wolf Robotics, they worked with their suppliers to reduce lead time and improve service.
Reduced inventory to zero when they could order what they needed after the customer orders arrived.
The shorter lead times brought in new orders that they would not have gotten in the past – a nice $2.5 million.
Through lean concepts, it became obvious that working with suppliers to achieve a win-win partnership to reduce lead times and inventory was the best way to go.” – Kent Sorenson, Certified Lean Master, Wolf Robotics

23. General Air
Formed a cross-functional team to improve value stream for CO2 containers:
Reduced cycle time by 25%
Reduced in-process inventory by 25%
Reduced production operator and driver overtime by 75%
Reduced backorders and unbillable deliveries by 75%
Reduced cylinder carrying costs by 25%
Customer and operator experience – dramatically improved!
“We have been very pleased with the results to date and are preparing to launch new teams to address other key value streams in our business.” – Mark Gregory, VP of Operations, General Air

24. Denver Machine
Leveraged the 5S System to organize and improve flow in manufacturing and storage areas:
Improved efficiency
Increased capacity
Reduced wasted labor by $50,000 in first year
Better organization
Better visibility on work in process
Denver Machine Shop implemented a lean technique call The 5S System.
This improved efficiency and increased capacity
The first-year $50,000 reduction in wasted labor is more than 14x the cost of the course!
“I extend thanks to Rich Mittan for leading our efforts to get workplace organization going at Denver Machine Shop. We are seeing tremendous benefits! Our team is poised to continue with this initial effort at implementing lean.” – Eric White, President, Denver Machine Shop

25. Mountainside Medical

26. Sample Benefits Increase revenue Eliminate overtime Increase capacity
Cut inventory
Improve service
Reduce costs
Improve quality
Better place to work

27. Transformance Advisors
Contact Info
Mike Loughrin
Transformance Advisors

28. More Information www.transformanceadvisors.com Articles Assessments
Newsletter
Gov’t Funding
Lean Training

29. Thank You

30. Lean Transformation Program
Establish Initiative
Initiative Workshop
Team 4 Project 7
Team 3 Project 4
Team 3 Project 8
Team 2 Project 2
Team 2 Project 5
Team 2 Project 9
Organize for Success
Step Back to Reflect
Team 1 Project 1
Team 1 Project 3
Team 1 Project 6
Team 1 Project 10
Value Stream Assessment
Assess Initial Culture
Join Lean Community
Assess Culture
Lean Community Leadership
Assess Culture