Lean Consortia: A Value Added Alliance. WDMA Technical & Manufacturing Conference June 17, 2015

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1 Lean Consortia: A Value Added Alliance WDMA Technical & Manufacturing Conference June 17,

2 About Loewen Founded in 1905 by C.T. Loewen as a lumber mill Created a sash and door joinery factory in 1919 During the 30s and 40s, produced beekeeping equipment, church pews, and wood crossmembers for rural electrification Started producing pre-assembled windows (frame and sash) in 1948 Today Canada's largest wood window and door manufacturer 2

3 Lean Relentless elimination of waste Identifying and removing non-valued added activities Delivering value to customers through people & processes 3

4 Why Lean? Manufacturer s Challenges Quality On time delivery Lead time Productivity Sales fluctuations Safety Performance Inventory Speed to market Economic stability, volatility & uncertainty 4

5 Facing the Challenges Lean Easy to say, hard to do But, we don t learn it until we do Where to start? How to implement? How to sustain? 5

6 Lean Consortia: A Value Added Alliance Concept Non-competing organizations joining together to openly share lean and business best practices Manufacturers Health care Government Service organizations You re not alone out there! You will never live long enough to make all the mistakes yourself! 6

7 Lean Consortia: A Value Added Alliance Results Collaborative learning Networking Share / generate ideas Support infrastructure Accountability Develop teams Initiative support Shared training See other plants / operations Move lean ahead 7

8 Canadian Consortia 17 consortia nation wide Five Manitoba consortia represented by 45 companies Manufacturing Furniture, kitchen cabinets, windows & doors, steel fabrication, sheet metal, plastic molders, casting, transit buses, coaches, aerospace, agriculture, electronics, trailers, canvas, furnaces, concrete, currency, packaging Printing Food processing Health care & Pharmaceuticals Law enforcement Education Forestry 8

9 SMLC Southern Manitoba Lean Consortium (SMLC) 9

10 Lean Consortia Typical Structure 8 12 companies per consortium Each company formally represented by board members Board chair & vice chair Member driven Lean & general facilitation through the Canadian Manufacturers & Exporters (CME) 10

11 Canadian Manufacturers & Exporters The nation's largest and most influential industry association representing over 10,000 companies coastto-coast Mandate is to represent the interests of Canada's industrial and international trade membership 11

12 Lean Consortia Typical Structure Three tiers of membership Annual fee (Tier 1 $7,000): Lean facilitator & general administration Seven facilitator days Lean assessment (two of seven facilitator days) Formal half day monthly meetings December annual business planning session Regular informal interaction between member companies 12

13 Lean Consortia Formal Monthly Meetings At member companies Round table sharing last month s CI activities Common template Reflection Planning ahead Solicit input from other s experiences Shining moment Report on last month s meeting mini kaizen 13

14 Continuous Improvement Plan Last month AGM Kanban replenishment of wrapping material Last month s impact Lean key discussion topic Discovered 7 years worth of material that will be reduced to 2-3 weeks Plans for next month Reduce Inventory of Raw Material in Warehouse Implement Kanban replenishment system for other materials Next month s projected impact Increase available cash on hand Easy to understand ordering system for new warehouse We need help with. Kanban system logistics Investigate the use of QR codes Acrylon Plastics + Barkman + Decor Cabinets + Jodale Perry + Loewen + Rainbow Trailers + Steel Tech + Valeant + Winkler Canvas

15 Shining Moment

16 Continuous Improvement Plan Last month Implemented a custom designed & built cabinet tilt-and-lift machine to Packaging Implemented new drawer front drilling locations and equipment in key areas Plans for next month Standardization and documentation of processes for new finishing line SMED project for finishing line Last month s impact Cycle time reduction from 105 s to 10 s, improved operator ergonomics Reduce travel by 45% Next month s projected impact Labour efficiency & quality improvements Set-up time reduction for colour changeovers We need help with. Automation planning for labour efficiency gains Acrylon Plastics + Barkman + Decor Cabinets + Jodale Perry + Loewen + Rainbow Trailers + Steel Tech + Valeant + Winkler Canvas

17 Cabinet tilting process in Packaging, before: Cabinet tilting process in Packaging, after: 1 2 3

18 Continuous Improvement Plan Last month Value stream mapping of packaging process. Assess and remove unnecessary screens from the 60 inch sieve. Last month s impact Reduced product waste and labour cost Reduced cleaning times between lots of different products Plans for next month Reduce cycle time for 24 inch sieves. Evaluate reduction of blend sampling from 10 locations to composite. Next month s projected impact Improved capacity utilization. Reduced backlog. Reduce cycle time of sampling and QC testing. Reduction in testing cost. We need help with. Equipment change over cycle time reduction Acrylon Plastics + Barkman + Decor Cabinets + Jodale Perry + Loewen + Rainbow Trailers + Steel Tech + Valeant + Winkler Canvas

19 Sample of Packaged bottle opened to verify cotton, tablet count, desiccant and cap tightness. Empty bottles and tablets rejected. Shining Moment

20 SteelTech Situation Record sales not enough space to handle volumes Batches of depending on model Used consortium facilitator days to engage lean facilitator Lean training & multiple kaizen events Mini kaizens during consortium meetings 20

21 SteelTech Results Moving from batch to flow Batch sizes now 8 10 Reduced inventory by 50% Reduced WIP by 75% Hours per furnace cut by 33% Volume increased by 40% in same footprint 21

22 Lean Consortia Scheduled Monthly Meetings Host presentation Lean strategy / plan Areas of current focus Successes & challenges One area of challenge introduced for mini kaizen 22

23 Lean Consortia Scheduled Monthly Meetings Mini kaizen Two hour CI event A3 problem solving approach Value stream map Identify areas of opportunity Create value graph Generates an action plan Report results at next meeting 23

24 Lean Consortia A3 24

25 Lean Consortia Scheduled Monthly Meetings Mini kaizens Barkman: Shipping of large glass reinforced planters Winkler Canvas: Visual scheduling of work Loewen: Metal cladding cutting SteelTech: Raw material inventory reduction Valeant: Equipment set-up reduction 25

26 Lean Consortia Scheduled Monthly Meetings Plant tour Tour feedback Take away s Improvement opportunities 26

27 Lean Consortia Scheduled Monthly Meetings Other business Facilitator report-out Up-coming events Next board meeting preparation Process check (Hensei) Networking lunch 27

28 Lean Consortia Special Interest Groups (SIGs) Cross consortia areas of special interest Same concept of sharing best practices Monthly formal meetings of company specialists SIGs Total Productive Maintenance (TPM) Human Resources (HR) Information Technology (IT) Safety 28

29 Lean Consortia Informal Exchanges & Support Sharing specific tools, concepts, best practices Exchanging resources Expertise Materials Facilities Outside eyes during events Support for information Problem resolution 29

30 Benefits of Lean Consortia Cross consortia Plant tours Always pick up ideas Send employees See other operations / different perspective Reinforce lean concepts and principles See what s possible Hosting gives sense of pride & ownership Appreciate own progress Outside eyes provide improvement opportunities 30

31 Benefits of Lean Consortia Learning & Sharing Cost sharing Employee training Expert consultation or facilitation Share Showcase One day consortia mini conference 31

32 Benefits of Lean Consortia Accountability & Supporting Sustaining always difficult Support network to motivate & support Helps hold each other accountable to commitments To business To employees 32

33 Supplier Consortium Involvement Cardinal IG Part of Red River Valley High Performance Consortium 12 companies in the North Dakota Red River Valley Similar model to SMLC Biggest benefits See other plants Solve CI problems together Company leaders discussing challenges & ideas to resolve Take ideas from each session Mike Arntson, Plant Manger, Cardinal IG, Fargo, ND 33

34 Supplier Consortium Involvement Intek Plastics Part of Manufacturers Alliance Part of AME Optima Consortium Key benefits Team development Benchmarking against other companies Plant tours Peer group meetings (SIG s) Lean certification programs CI training Pete Barboni, Continuous Improvement Manager, Intek Plastics, Hastings, MN 34

35 SteelTech Testimonial Many fruitful ideas come from SMLC Meetings and members Cross company sharing of ideas helps in all areas of business Vibrant, Hard Working, Open Group Work as a team to build each other up Friends, Contacts, Partners Shop re-organization to become more efficient done with help of SMLC members at Consortium meetings 35

36 What They Are Saying Always learn something on plant tours Making a difference on our lean journey Outside eyes give amazing insights! Always bring a friend changes their perspective Just as important to find out what doesn t work You get out what you put in It s such a relief to find others with same struggles I derive energy from like-minded people Lean applies everywhere! Each company is unique, but in very similar ways! 36

37 37 Together we get better!

38 38 Questions?