Lean Is a Journey, Not a Destination. Phillip Poston Director of Communications Hytrol

Transcription

1 Lean Is a Journey, Not a Destination Phillip Poston Director of Communications Hytrol

2 The Journey Begins 2003 Research Visited different companies Attended seminars & consulted with academia Analyzed the competition & toured our suppliers The Catalyst Rockwell lost our business in 1998 due to quality issues, late delivery, pricing Rockwell requested a return visit to show us what was different, demonstrate Lean enterprise, and prove they could handle our account

3 Rockwell Visit The turning point Structured plant layout, Cellular manufacturing, Clear work station instructions, Performance metrics in each cell, Orderly work flow (single piece), Terrific housekeeping, Great employee attitude The take-away We can do this, Similarities are striking, Lean will work at Hytrol, We can revolutionize our business, Need an internal champion, Needs to be top driven, Need a mentor, Rockwell can help us

4 How To Begin? 2004 Key factors to get moving Keep it simple, Lead by example, Begin with 6-S Program, Teach and involve the employees, Change the environment, Instill the discipline to maintain, Choose Rockwell Automation as the mentor Must Obtain Some Success!

5 Integrate Three Proven Tools Lean Enterprise Six Sigma Maintenance Excellence Eliminate Waste Eliminate Defects Hytrol s Power Lean

6 Long-term Philosophy Business Strategy Tactical Plan Relentless Attack on Waste

7 Initial Plan All Employee Meetings Jan (1 day) Executive Training Jan (1 day) Champion Training Feb (3 days) Wave I Training Feb.- Aug (6 months) Power Lean Masters 25 employees Wave II Training Sept Feb (6 months) Power Lean Masters 25 employees

8 Power Lean Master Class 2005 Attributes High Bias for Action Proven Track Record Strong Commitment Good People Skills Highly Regarded in Technical Discipline Future Leaders Creativity Roles Mentoring Teaching Coaching Transferring Discovering Influencing Accountable for Results

9 Process Implementation Follow-up to initial training Executive Team Develop current state map Generate future state map Core Team Conduct Champion Training Start Wave I training Focused on support operations

10 In a Lean Production System: The People aren t Different The Machines aren t Different How the Processes Relate to Each Other is Completely Different Power Lean is Designed to produce: What Customers Want When Customers Want it Quantity and Quality Customers Want

11 Five Steps in Lean Guiding Principles Determine Value Define Value Stream Establish Flow Create Pull Strive for Perfection Predictable Processes and Reliable Equipment Six Sigma Methodologies Optimization and Control of Key Processes Maintenance Excellence

12 Leadtime & VA vs. NVA 1) Receive & Enter the Order _5 min Value- Added Time 2) Schedule the Order _2 min 3) Configure the Order _5 min 4) Order Material _2 min 5) Machine, Assemble, Test _120 min 6) Package the Order, Shipping Prep _10 min 7) Load Truck _5 min 8) Other min Quoted TOTAL VALUE-ADDED TIME: Leadtime: 5 days X 960 min per day: 3.1 _149 min _4800 min % VA Time

13 order delivery order delivery Attack order delivery Leadtime & VA vs. NVA Leadtime NON-VALUE-ADDED Mass Production Approach to Change NON-VALUE-ADDED Attack NVA Lean Manufacturing Approach to Change

14 Value Stream Maps Critical Starting Point for a Power Lean Project Create current state map Include value & non-value added activities Develop future state map utilizing Lean Generate action plans to transform Implement action plans thru Kaizen events Team focused on implementing an action plan in 5 days or less

15 Identify Value in the Processes NORMAL VALUE ADDED FLOW WORK PROCESSES NON-VALUE ADDED NECESSARY REDUCE ABNORMAL UNNECESSARY ELIMINATE EIGHT TYPES OF WASTE: Inventory Transportation Scrap Processing Motion Over-Production Correction Human

16 Value Stream Map - Current State

17 Value Stream Map - Future State

18 Department Improvements Before Lean Space (Sq. Ft.) 13,000 WIP 2,500 Walk Dist Ft. TP Time 9:53 Crew Size 20 Volume 120 After Lean Space (Sq. Ft.) 3,500 WIP 50 Walk Dist. 30 Ft. TP Time 5:40 Crew Size 10 Volume 204

19 Management s View All is well

20 Employees View All is NOT well

21 Employees View What is management doing to us? You have sold us out. Lean will ruin the company! Why am I not in the cell? We will all be replaced by temps. My job is being eliminated! What the heck is Lean? Wages will be cut.

22 The Disconnect and Regrouping What we had here was a failure to communicate! Didn t train everyone and explain Lean concepts Not enough operator involvement which came across as threatening No timetables discussed and operator moves were a mystery We had to step back and ensure employee engagement by revealing the master plan. We began a confidence building campaign by revising the training plan and providing the necessary education.

23 Education for Everyone May November 8 Hour Class Every Hytrol Employee Run Their Own Business See Power Lean Tools Work Focus On Customer

24 Revised Training Plan Class Timing Duration Wave I Feb. Aug months (Power Lean Masters 25 employees) Lean Introduction May Nov months (628 employees) Wave II Jan. July months (Power Lean Masters 26 employees) Wave III Aug Jan months (Power Lean Masters 24 employees)

25 Support Focus Factory Savings Category Area Mass Production Lean Mfg Change +/- Change % Labor: Roller % (people) Pulley % Paint % Reducer % Total % Floor Space Roller 45,000 35,000-10,000-22% (sq. ft.) Pulley 13,000 3,500-9,500-73% Paint 21,000 12,000-9,000-43% Reducer 10,200 4,500-5,700-56% Total 89,200 55,000-34,200-38% W.I.P Roller 25,000 1,000-24,000-96% (pieces) Pulley 2, ,450-98% Paint 15,000 1,000-14,000-93% Reducer 1, % Total 43,500 2,250-41,250-95% Finished Goods Roller 250, , ,000-44% (pieces) Pulley 2,500 1,250-1,250-50% Reducer % Total 252, , ,500-44%

26 Product Focus Factories Establish focus factories based on product families In line flow fabrication >assembly >shipping Value stream map Green Cell belt under Blue cell belt over Orange cell chain roller, line shaft, & specials Conduct 80 / 20 analysis by sales dollars Determine Kanban components and levels Identify & involve employees for product families Select point of use locations for Kanban components Identify equipment needs and layout Move equipment per layouts Completion of product focus factories: 2 nd Quarter 2007

27 Green Cell Models Models Units Dollars 80% Dollar Volume 190 ABEZ 1520 $7,782, ACC 2404 $4,387, LRC 2660 $3,469, LR 512 $1,679, ACC 703 $1,065, ABEZ 200 $932, LRS 562 $842, ACZ 278 $806, LRCT 288 $382, CCAB 70 $349, LREZ 40 $287, LRSS 196 $232, LRC 181 $185, LRA 29 $126, CCAC 48 $106, CCEZ 11 $85, PREZ 16 $66, LRS 38 $47, LRSS 20 $19, ABA 7 $10, PREZC 2 $3,267.00

28 Product Focus Factories 80 / 20 Analysis of inventory in Parts areas Cells Total Parts 80% Usage Green Belt Under Blue Belt Over Orange Line Shaft / Specials Red Gravity

29 Green Cell Product Focus Factory Assembly Sub-Assembly Parts Fabrication

30 Hytrol s Transition Pit Stops (Kaizen Events) Pit Stops 2004 (20) Pit Stops 2005 (46) Pit Stops 2006 (55) Pit Stops 2007 (35) Total Pit Stops (156)

31 Hytrol s Transition 142 pieces of equipment moved 100,000 sq. ft. of floor spaces cleared Increased capacity in support cells Created flow through fabrication processes Created pull systems for support cells Set up daily metrics for focus factories Created a visual work place Created 6-S execution audit system

32 Hytrol s Transition 140 direct labor positions eliminated Commitment to employees Removed 800,000 lbs. of unneeded items Created and stocked tool crib with items collected from pit stops Went from 36 lift trucks to 14 Eliminated 60% of shop floor supervision Removed 50% of WIP in the value stream

33 Lean in the Office Beginning in 2008 and continuing into the first half of 2009, Hytrol began implementing Lean processes in the front office. The main goal of this endeavor is to improve communication, speeding up and streamlining office processes. The Power Lean Teams (made up of Power Lean Masters) organized the office into cells Pit Stops Pit Stops we created a flexible work team dedicated to maintaining some future workers and conducting Pit Stops.

34 Office Lean Create new value streams for the front office Value streams based on how Hytrol receives orders Value stream make-up Flow Cross functional teams to handle entire order to ready for manufacturing Improve order flow through front office processes to streamline functional activities Metrics Metrics will be developed to measure quality and throughput of each team Customer focused Provide key areas for customer contact for orders and service Consistency in designs and orders

35 Broader Goals of LEAN Office Do as LITTLE as Possible TAKT Time Integrates Everyone with the Customer Change the Organizational Structure to Match the Customers Value Streams Involve Everyone

36 Problems All data collection is manual and time consuming. Currently managing a large backlog and pending IFS implementation. Currently debating the inclusion/exclusion of Pre-Sales activity in the Value Stream(s) and the impact on organizational structure.

37 ERP implementation that shook up the plan Purple cell created Red cell moved In-sourcing with pulley lagging No good records of number of Pit Stop events.

38 Ok Now what?! Breathe deep and try to get as much business out the back door as possible while we recover from the ERP situation! Right? Wrong Lean is a RELENTLESS elimination of waste. When you rest, the waste creeps back into the processes!

39 2015 = reigniting the fire!

40 Long-term Philosophy Business Strategy Tactical Plan Relentless Attack on Waste

41 2015 = reigniting the fire! We realized several things that let us know it was time to refocus: How do we raise the bar for the Lean Facilitator? How do we keep Power Lean Masters engaged with the program? How do we make sure every employee in 2015 knows the Power Lean principles? How do we train new hires on Power Lean? When was the last time we had a Master Class?

42 How do we raise the bar for the Lean Facilitator? We had the opportunity to hire a new Lean Facilitator to help us turn up the heat on the Power Lean program. She is one of our Power Lean Masters She is dedicated to getting back to basics with Kaizen events She is focused on being relentless in her pursuit of our Power Lean goals

43 How do we keep Power Lean Masters engaged with the program? We had not put in a structure for the Power Lean Masters to continue to conduct Pit Stops (Kaizen events). Our Lean Facilitator knew that the number of Kaizen events would be limited if we didn t re-engage our Power Lean Masters in ongoing events. We added a Power Lean Master designation to their badges and gave them the opportunity to stay active or not. 43 out of 44 chose to stay active and participate! We will have a minimum of 20 Kaizen events completed in 2016.

44 How do we make sure every employee in 2015 knows the Power Lean principles? We had lots of employees that had been hired after the big employee training that didn t really know what Power Lean was all about. We needed to retrain everyone to know that we all had the same understanding. (886 employees) This training was made possible by an firm commitment from the very top of the organization. Started on May 13 th and finished on December 2 nd. Coordinated by our Employee Training Specialist 12 instructors and assistants

45 How do we train new hires on Power Lean? Along those lines we knew that we had to future proof to not end up with a massive group of employees that didn t know Lean We have a plan to set up quarterly Power Lean 101 courses for new hires within that quarter. 2 week buffer because we want new employees to have a basic understanding of the company before going through the training.

46 When was the last time we had a Master Class? We chose 25 individuals to go through Master Class IV We are down to 23 employees within the class due to attrition. This class is already making a difference within our production area visually and with flow. They are responsible for the 12 Kaizen events in They are being called the best class yet! Master Class V will be selected and trained in 2016 to continue the high level training and commitment. This will become a yearly event to train Power Lean Masters.

47 Summary Found a mentor Successfully implemented Lean Transformed our business Had a major bump in the road Our focus shifted from the relentless attack on waste Reignited the program The rest of the journey is happening right now!

48 Questions? Thank you for attending!