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1 The Thinking Approach LEAN CONCEPTS All rights reserved 1
2 Tools to Drive Kaizen Activity CREATING A LEAN TRANSFORMATION All rights reserved 2
3 IMPLEMENTATION PLANNING MILESTONES: 1. Setting targets quantify business need 2. Kaizen and Stability 3. Lean transformation roadmap 4. Confirming good activities and a successful journey 5. Future activities to support Continuous Improvement All rights reserved 3
4 WHERE DO WE GO? Set TARGETS 1. Developing vision based upon business need Who is the customer? What do they want? When do the need it? In what quantity is it required? 2. Communicate vision through concrete metrics Weekly units produced On time delivery target Labor hours per unit All rights reserved 4
5 HOW WILL WE GET THERE? CONTINUOUS IMPROVEMENT 1. A stable, repeatable process must first exist 2. Execute planned kaizen activity 3. Reestablish stability to confirm results SUSTAINABLE IMPROVEMENTS STABILITY STABILITY KAIZEN STABILITY KAIZEN Must have stable starting condition to build from KEY POINT: The Stair Step Approach (SSA) leads to sustainable continuous improvement All rights reserved 5
6 WHAT WILL THE ROAD LOOK LIKE? LEAN PRODUCTION SYSTEM Lowest Cost Just In Time Shortest Lead Time Highest Quality Jidoka * Pull System * Continuous * Flow * Takt Time * Separate man * and machine * Stop and * notify of * abnormalities Problem Solving Problem Solving HEIJUNKA STANDARDIZED WORK KAIZEN STABLE PROCESS All rights reserved 6
7 LEAN TRANSFORMATION ROADMAP 1. Grasp the current condition [Takt Time] 2. Create stability [Heijunka] 3. Develop Standardized Work 4. Develop andon support [Jidoka] 5. Introduce 8-step problem solving [+ contain] 6. Rebalance and design target work processes 7. Work cell design 8. Introduce pull system All rights reserved 7
8 Production Lead Time in Days GRASP THE CURRENT CONDITION Define the customer demand - Takt Time Takt Time TT = Define all KPI s needed to track progress toward target(s) Document initial MiFLOW Total Daily Production Time Total Daily Production Requirement Quantify the existing Performance Gap Weekly BT Chamber Production Lead Time By Month New schedules introduced Cabinet, FA, Test rebalanced Attempted cabinet Eliminated process downtime Apr-Jun '10 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Month All rights reserved 8
9 CREATE STABILITY 1. Level weekly production load [Heijunka] 2. Create sequenced schedules for all work processes 3. Sequence material handling with Takt time 4. Pull excess inventory back to stores Contain over production Begin documenting problems as they occur Begin tracking KPI s All rights reserved 9
10 DEVELOP STANDARDIZED WORK Create STW for each process Weighted average times to account for model mix and option content(s) Create the standard for production time, work sequence, and built in quality Key Point Standardized Work is generally developed in tandem with stability All rights reserved 10
11 MACHINE HUMAN DEVELOP ANDON What does ANDON look like? Method for operator or machine to stop at abnormality Method to notify supervisor when abnormality occurs Can be simple or complex Visual communication of status at the process Creates urgency in problem solving Helps contain defect flow out Supports communication between management and team members All rights reserved 11
12 8 STEP PROBLEM SOLVING First introduced to line management [team members responsible for responding to andons] Management practices problem solving on the shop floor in group setting to support learning Learning is confirmed through individual problem solving Management cascades learning through department directly to team members Problem Solving can be introduced sooner depending on capabilities All rights reserved 12
13 PROCESS REBALANCE Use Standardized Work [STW] to define total production work time Create work balance charts Build new processes by stacking Value Added Work to Takt Time YAMAZUMI BOARD Work Balance Chart - BEFORE Work Balance Chart - AFTER All rights reserved 13
14 WORK PROCESS DESIGN Work processes designed to support Continuous Flow Build in quality at each process Eliminate silo building Eliminate building to in process stock [1x1 build] Build what we need, when we need it, in the right amount A B Each Process only ships quality product C Ship BEFORE AFTER CONTINUOUS FLOW BUILDING TO SILO [STOCK] 1X1 BUILD All rights reserved 14
15 WORK CELL DESIGN Improve work ergonomics / safety Use 5S principles for organization Eliminate waste in the process Over production Waiting Conveyance Over processing Inventory Motion Correction Separate man from machine Free up people for more value added work! All rights reserved 15
16 PULL SYSTEM Method of production coordination The removal of completed product by a downstream process IS the signal to produce Implement kanban PACE OF PRODUCTION PACE OF SALES Normal Condition One unit is removed from the pull box store No need to continue production Production starts to fill the opening All rights reserved 16
17 KANBAN Setup work process kanban [lead time vs usage] All kanban must include the following information 1. What to produce 2. Quantity to produce 3. Who will produce and in what sequence 4. Who will receive Reduces component lead time to zero All rights reserved 17
18 IMPLEMENTED LEAN STRUCTURE LEAN PRODUCTION SYSTEM Lowest Cost Just In Time Shortest Lead Time Highest Quality Jidoka * Pull System * Continuous * Flow * Takt Time * Separate man * and machine * Stop and * notify of * abnormalities Problem Solving Problem Solving HEIJUNKA STANDARDIZED WORK KAIZEN STABLE PROCESS All rights reserved 18
19 CONFIRM GOOD RESULTS Review KPI s at the end of transformation Does new current condition meet targets laid out at the beginning? Future goals driven by remaining gap between target and actual Apr Aug Dec Apr All rights reserved 19
20 CONTINUOUS IMPROVEMENT Future kaizen work is driven by ever changing customer demand Constantly challenge ourselves by seeking ways to eliminate waste Takt Time Cost Lead Time Man Power ULTIMATE GOAL OF CONTINUOUS IMPROVEMENT Always provide the customer with what they want, when they want it, and in the quantity they want it. All rights reserved 20
21 Production Lead Time in Days REFLECTIONS Weekly Unit Production Lead Time By Month Apr-Jun '10 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Month All rights reserved 21
22 CLOSING DISCUSSION QUESTIONS All rights reserved 22
The Thinking Approach LEAN CONCEPTS , IL Holdings, LLC All rights reserved 1
The Thinking Approach LEAN CONCEPTS All rights reserved 1 Basic Thinking to Manage the Journey MANAGEMENT TACTICS OF A LEAN TRANSFORMATION All rights reserved 2 LEAN MANAGEMENT Two key questions What is
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