Michael A. Nolan t/a A MAN 4 Lean Innovation part of Pembroke Alliance

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1 Michael A. Nolan t/a A MAN 4 Lean Innovation part of Pembroke Alliance

2 What is Lean? Its about doing things: QUICKER BETTER CHEAPER...TOGETHER

3 What is Lean? Lean seeks perfection: - Perfect quality - Zero waste - Perfect customer satisfaction Lean is a way of life a belief system saying This is how we do things around here Lean is a process of continuous improvement Lean is not a set of tools to improve productivity. The tools are only the mechanism Mistakes are seen as opportunities to improve

4 Arguments Against Lean Our industry is different We cannot possibly use Toyota systems Lean doesn t work in companies of our size All we are doing is looking at the time line from the moment a customer gives us an order to the point where we collect cash. And we are reducing that time line by removing non-value-added wastes. (Taiichi Ohno Toyota) Customising the approach is very important. Over time you will develop your own system.

5 Problems Starting Lean Management commitment is not unified Cherry-picking easy projects randomly Expecting training to make Lean happen without changing the process Reinventing the wheel because we are different We can do it ourselves, just like Toyota Not establishing a sense of urgency

6 Why Do It? Helps organise your business better so that you are more capable of meeting customer demands. It builds capabilities of employees particularly in the area of problem solving and helps to make more interesting jobs It helps the company become stronger, so that it can grow more sales and ensure its survival If your competitors are doing it and you are not, then you fall behind and may lose customers. Competitors could be improving their competitiveness by 10%+ each year

7 Five Lean Principles 1. Specify value from the customer s viewpoint 2. Identify the value stream in the process 3. Make value flow through the system 4. Pull demand through the flow 5. Seek perfection continuously

8 Lean Formula Capacity Orders Gap Work VA NNVA Waste NVA Runners Fixed Demand Value Demand Repeaters Movable Demand Strangers If + capacity Waste If capacity Problems

9 Waste: anything other than the minimum amount of equipment, material, parts, space and worker s time which are absolutely essential to add value to the product Overburden: of people who are stressed and overworked and machines that are working beyond their limits. If they are working beyond 90% of capacity (in a simple process) then they are likely to end up in trouble and miss targets. Unevenness: This is usually influenced by customer s orders or supplier deliveries. Is your system encouraging this by rewarding big infrequent orders? Challenges of Lean Overburden Waste Unevenness

10 9 Wastes 1. Overproduction producing more product than you have orders 2. Inventory where the excess raw materials and finished goods have to go 3. Waiting Time queuing to do something or a machine waiting for materials 4. Unnecessary Movement of Materials too far away to the next process, or rework 5. Overprocessing e.g. of higher quality than needed 6. Motion employee movement that does not add value 7. Defects rework or scrap due to incorrect processing 8. Unused Creativity underutilised employee knowledge 9. Environmental disposing of packaging/ managing utilities

11 Toyota

12 Sakichi Toyoda founder of Toyoda Automatic Loom Works Developed the Toyoda Model G Automatic Loom in In 1929 the patent for it was sold to a British firm for 100,000.

13 Toyota was started in 1933 by Kiichiro Toyoda and developed the first car 3 years later. Originally started under the name "Toyoda" ( トヨダ ), until 1936 when it changed to Toyota ( トヨタ ). Production started with trucks in 1935 and cars a year later. Toyoda Standard Sedan AA 1936

14 They learned to adapt and adopt from others Takt time - from Focke-Wulff aircraft, Germany in 1930 s Just-in-time from Piggly Wiggly supermarkets, USA1956 Pull system from Ford, USA 1936 Quality system Deming Awards in Japan 1951 Poka Yoka developed by Shingo, Japan 1961 Quality Circles developed by Ishikawa, Japan 1961 SMED developed by Shingo, Japan 1985 These and others, helped create the opportunity to combine all they learned into the Toyota Production System and build the most reliable cars in the marketplace by the 1980 s.

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16 Rudyard Kipling s Six Honest Men Six honest serving men, Who taught me all I knew; Their names are What and Why and When; And Where and How and Who. After using the 6 honest men, try using the 5 whys to dig deeper. Remember Deming's 94/6 rule 94% of problems lie within the system and only 6% with the person. Try to ask open questions, or you will get short yes/no answers and ones that will give you the answer they think you want.

17 Challenging All Processes (CAP) 1. Bottlenecks Are some of the processes causing bottlenecks because of waste in the process or even under capacity? Can the bottlenecks be broken down to improve levelling? 2. Travel Time Is there too much distance between processes involving too much travel time? 3. Errors Are errors being put aside and not accounted for in the cost of a particular product? Worse still, are they escaping into the customer? Are errors examined as to how they happened, getting to the root cause? 4. Quality Is there quality assurance at the end of each process where everyone checks their own? Is prevention used instead of detection, through things like poka yoka

18 Challenging All Processes (CAP) 5. Standard Work Are there standardised systems in place to get consistent results? Have they got the support of staff through involvement in setting the standards? Does management expect them to be followed? Are there consequences if they are not? 6. Specifications Are they re-done each time a job comes back, or are they done once and kept as a template? Is a spin-off template kept when they are modified? 7. Flexibility Can the system respond to changes in customer/technology requirements? Can any changes be incorporated into the system in terms of standard work and specifications?

19 Challenging All Processes (CAP) 8. Complex Work Are mistakes made because of complex procedures or forgetting what to do? Do you use aids to help such as one page lessons, job sheets, check lists or action pictures? 9. Paper Records Is the process causing duplication of data entry? Is it adding to, or reducing/eliminating paper records? 10. Suppliers Do they check for 100% OK supplies? Do you have a formal process for non-conformity? Do you give feedback on performance?

20 Challenging All Processes (CAP) 11. Change Resistance Have changes in the past failed due to resistance? Have the people resisting change been involved in developing the changes to the system? Do people have their favourite way of doing a process? Do you work on getting people s buy-in through explaining the need for change and their involvement in organising it?

21 Pembroke Alliance Clients Leanstart Ready Meals company - savings of 28,000 Fish company - savings of 50,000 Dairy company (small) - savings of 18,000 Leanplus Readymeals company - savings of 654,000 Chicken company - savings of 300,000 Bacon company - savings of 408,000

22 Thank You Michael Nolan; Mob: ; part of Pembroke Alliance, John Daly, Creevy Lake, Carrickmacross, Co Monaghan Pembroke Alliance Team: John Daly, Co. Monaghan Pat O Leary, Co Monaghan Mike Nolan, Co Dublin Derek Carey, Co Kildare