Lean in process industry environments. Wiebe Nijdam March29th, Hørsholm Denmark

Transcription

1 Lean in process industry environments Wiebe Nijdam March29th, Hørsholm Denmark

2 Introduction: Lean Global Network LGN is a non-profit corporation with HQ in Boston, USA and consists of 17 affiliated non profit Lean Institutes devoted to the promotion of lean and the development of lean leaders. Global Mission: to be the leading educatorsfor society in maximizing value and minimizing waste. To accomplish this goal, we develop, advance and implement lean principles, tools, and techniques as a system designed to enable positive change. Affiliates support lean transformations by developing lean practitioners and leaders through education, coaching, support, action research, events and learning materials. Founded in 1997 by Jim Womack & Dan Jones authors of The Machine that Changed the World, Lean Thinking and Lean Solutions.

3 Introduction: Wiebe Nijdam Managing Partner Lean Management Institute Netherlands Actively involved in Lean since 2001 (food & process industry, retail & logistics, heavy equipment, clothing industry) Lean experience in over 60 projects worldwide Background: plant manager, education & consulting

4 Overview Introduction The two different types of production industry Always the process focus! Case How do lean transformations work? Where & howto start? Questions

5 Does Lean work in process environments? Yes it does! Let s see how..

6 Assembly characteristic A few variants Process Industry characteristic Many variants Most of you, are in this area: Many parts become,.. A few raw materials become,..

7 Typical problems in process industry Fast processes, can create big volumes very quickly but can create also waste very quickly Difficult changeovers, big volumes and batch sizes, long start-up times. Losses of material at changeovers Often more remote from the customer, full bullwhip effect Basic stability problems, sometimes vulnerable, complicated processes and machinery Perception that raw material is cheap, thus limited focus on losses.

8 What does this cause? For example: Rework (although it is sometimes automated and not seen as rework anymore) Lost time as result of standstill (time is the only asset that is not replaceable) Loss of finished goods as result of: Off specifications (material instability) Machine instability (spillages, startup losses, tank-heels) Wrong settings (method instability) Results in Quality concerns Late delivery Costs issues, margin under pressure

9 A business process: Raw Concept Material Process Process Process Process Process Process Process New Pilot / trial New Request of product run at product new Order product Entry Production Distribution development manufacturing launched Finished Product Process: all steps necessary to turn a raw material into a finished product

10 Lean Value added vs. non value added Focus of traditional efficiency improvement Value adding Necessary but non value adding Non value adding Focus of Lean All we are doing is looking at the time line -from the moment the customer gives us an order to the point where we collect the cash. And we are reducing that time line by removing the non-valueadded wastes Ohno (1988-ix) 11

11 You are not getting a big gain by reducing on walking distance. Classical perception of lean, reduction of the 7 wastes: Transport Inventory Motion Waiting Overproduction Over processing Defects 1% 2% 0% 3% 7% 2% 6% 7% 2% 1% 1% 29% 20% 19% Milk Raws Packs Labour Depretiation others losses other var distrib

12 Where to start? Connect with your P&L! Sales Cash Increaserevenues by offering products customers want through constantly testing customer preferences (what makes customers smile?), improving quality and frequently renewing products Improve cash by mastering, simplifying and accelerating flows and reducing inventory EBIT Improve profitability by understandingthe true source of costs in seeing the waste created by our work methods and teaching employees to eliminate it step by step CapitalExpenditure Developinglighter, more flexible equipment that keep people in control of the process while liberating them from heavy burdens Source: Michael Ballé, writer of the Goldmine & The Lean Manager

13 Phases in a lean transformation Work on improvemts in the total supply chain Improvement Realizeprocess changes in your door to door process Create stability in your process Time

14 Where & how can you start? Understand how you are doing: Indicator Y-1 J F M A M J J A S O N D BETTER SAME WORSE Accidents On-time Delivery Customer complaints Internal Not Right First Time Suggestions Absenteism Production Per Hour Per Person OEE Days of Inventory Finished Goods WIP

15 Ifyouknowhowyouare doing, which challengesare youfacing? Equipment & Method Quality Planning Utilization of machinery Sustainable position Responsiveness to the market Men CI culture Leadership Ownership, engagement The wastesyouseein a processare symptoms, look forthe causesthat create them! Do notonlyfocus on machines, a processis alwaysthe resultof people actions Where is your organisation currently in development? Take the actions that fit to your current status.

16 Questions?

17 Contact: Wiebe Nijdam René Aernoudts Aernoudts@leaninstituut.nl