Lean Implementation Approaches

2002 V2R Consulting Group, LLC

Lean Implementations
How do you make the change? Where do you start? How can you engage the organization? What approach is best? How can you make it stick? What will it take? Is there a process to follow?
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Lean Continuum
Specific cost target reduction Total cost model unchanged Tool specific metrics improved Local cost reduction Limited $$ returned Total cost model unchanged Area metrics improved Greater cost reduction Significant learning Bottom line impact Area metrics significantly improved Synergistic savings with shared resources and solutions Greater bottom line impact Visualization of cost opportunities High impact to bottom Significant line cost reduction Savings through Total cost internal managesignificantly ment of value impacted stream Strong Total cost relationships model approach and structure Organization Value stream metrics improved drives savings Significant impact to profit Value chain as strategic advantage Goodwill Business development Marketing position

RESULTS IMPLEMENTATION STATE

Awareness Current state Status quo

No Activity Low velocity Batch and queue High inventory Traditional measures Benchmarking

Tools Setup reduction SPC/DOE TPM Mistake proofing 5S

Point Improvements RIW events Local area changes Non-systems approach

Model Line Implementation Model example considering entire enterprise Focused implementation over a small business segment

Linked Model Lines Complimentary lean lines Linking of supporting systems Shared resources and solutions

Lean Enterprise Comprehensive management of internal value stream Processes aligned with customers and suppliers Strategy aligned

Integrated Enterprise Integration of supply base and customers into business processes Transactions and structure supporting integration

Extended Enterprise Influence and extension into total value chain Structure and transactions supporting virtual enterprise

ACTIVITIES

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Approach Types
Education and Awareness Tool Applications Point Improvements Rapid Improvement Workshops Functional Reform Project Approach Model Line Approach Sectioned Value Stream Approach Phased Approach

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Tool Applications
Setup Reduction Mistake Proofing Line Heating Six Sigma Automation

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Rapid Improvement Workshops

Assess 35 Weeks Scan / Plan

Implement

1 Week Ongoing

Follow-up Deploy

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Functional Reform
One silo at a time Mapping and streamlining tasks Addresses waste in each function Optimizing local efforts Focusing on internal activities, not interactions

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Project Approach
Area Assessment Overview and Awareness Project Planning and Selection

Purpose: Implement Lean in a limited fashion as a series of workshop events. Outcomes: An operational model of lean with local benefits but limited systemic improvement.

- Lean Basics - Est Foundation

Education Session 1 Implementation Education Session 2 Implementation Education Session 3 Implementation Project Closure
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- Velocity / Balance - Establish Flow - Integration / Systems - Establish Synergy - Final Assessment

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Model Line Approach

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Sectioned Value Stream Approach

Raw Materials

Phase 1
Product Group 1 Product Group 1 Product Group 1

Phase 2 Phase 3 Phase 4

Finished Product

Finished Product

Finished Product

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Phased Approach
Phase I
Organize Milestones

Phase II
Eliminate Waste

Phase III
Synchronize Production

Phase IV
Integrate
?? HR/people systems aligned with production. ?? Information systems changed. ?? Management systems developed. ?? Supply chain integrated. ?? Customer focus is the heart of the business. ?? Company-wide quality control practiced. ?? New product development system includes world-class practices. ?? Production smoothing implemented (e.g., level production and mixed model processing).

?? ? ?Layout changes to create ? ? ne piece flow achieved Current situation O assessed and cells and improve where possible. ?? understood. production flow Standard work practices ?? Passion and commitment completed. implemented and ? ?Workplace organization developed. practiced. ?? ?? (5S) implemented. Guiding vision created. Production at rate of ? ?Pull (Kanban) system in customer demand (Takt). ?? Implementation plan ?? place. developed. Machines operate ? ?Visual control ?? Goals unattended. ?? ? ? istake proofing implemented. M Priorities ? ?Initial set-up times and lot implemented. ?? Timeline ?? sizes reduced (focus is ? ? Lines balanced within Resources/Budget ?? on waste). cells. Communication ? ?Standard work practices ? ? up times further ?? Set Education started. reduced (focus is on ? ?Line stops practiced. equipment and tooling). ? ?Outcome measures in ?? Number of Kanban place (e.g., lead time, reduced. ? ? rocess measures in quality, etc.). P ?? Initial changes to place (e.g., number of planning and support line stops, set up times, systems made (e.g., etc.). BOM and process routing ? ? utonomous A sheets aligned, reduced maintenance started. number of transactions ? ? People are cross-trained and need for paperwork, and perform multiple etc.). tasks. ? Support systems changes

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Approach Choices Pros / Cons

Approach Type
Awareness and Tools Point Improvements RIWs

Positives
Must start momentum, tools are necessary Can be used to convince the organization, quick, motivating, flexible

Cautions
Be realistic about impact and savings Understand the limitations and location in the Lean Continuum

Functional Reform

Many functions need Will eventually need to this, removing waste is force coherence, never bad interdependencies A deeper cut over a greater time, more results Systemic issues will need to be managed

Projects

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Approach Choices Pros / Cons

Approach Type
Model Lines

Positives
Can serve as the example for the organization, great learning, real results Useful with large streams, makes it manageable Easier to explain and understand taking one layer at a time

Cautions
Not for the faint of heart, will stress the system by design May end up with disconnects and flows in transition until complete Takes a very long time, many resources, and not a learning model

Sectioned Value Stream

Phased Approach

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Road to Lean Preferred Path

Leadership Planning Infrastructure Development Model Line Selection Communication Model Line Implementation 90 Day project Learning by doing Example of Lean

Lean Awareness and Education Lean Education Barrier Identification Benefits Review

Stabilization Model Line Learning Document Results Achieve steady state

Transition Deployment Strategic sequence Focused effort Value Stream by Value Stream

Strategic Alignment Assessment of Results Alignment/Vision Transformation Planning

Lean Enterprise

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Approach Variations
Production Type Business Drivers and Issues Rate of Change Desired Rate of Improvement Desired

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Production Type
Production Type High Volume Repetitive Mix Model Repetitive Assembly Line Transfer Lines Flexible Cells Standard Process Job Shop Full Custom Job Shop Maintenance / Service Contract Fixed Position Production Large Scale Fixed Position Production Planned Repair Emergent Repair Industry or Product Examples Appliances, Toys, Consumer Electronics, Textiles Auto Final Assy, Consumer Products, Material Hdlng Equip Metal Stamping, Machine Parts, Semiconductors Aerospace Components, Auto Components Composites, Semiconductors, Small Marine Fabrication Machine Shop, Molded Plastics Airline Repair Centers, Avionics Warranty, Automobile Repair Housing, Defense Projects, Processing Equipment Office Buildings, Ship Building, Construction Projects Auto Body, Aircraft, Ship Repair, Operating Room Auto Services, Ship Repair, ER

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Production Type
High Volume Repetitive

Drivers / Issues
High Inventories, Economies of Scale, Line Balancing, Takt Time, Standard Work/Routings WIP Inventory, Setup and Change Over, Mixed Model Sequencing, Machine Breakdowns, POU Setup and Change Over, Process Capability, Planning Flexibility, Material Availability Material Availability, Idle Resources, Non Standard Routings, Excess/Available Capacity, Shared Resources Material Availability, Idle Resources, Non Standard Routings, Excess/Available Capacity, Shared Resources Multiple Source Planning, Production Sequencing and Balance, Space Management, Idle Resources, Material Planning and Sequencing Multiple Source Planning, Production Squencing and Balance, Space Management, Idle Resources, Material Planning and Sequencing Multiple Source Planning, Job Planning and Pacing, Resource Setup and Changeover, Material Planning and Sequencing Capacity Management, Resource Max Configuration, Sequencing and Resource Application, Multiple Skill and Priority Mgt

Waste
Complexity Labor Over Production Space Energy Defects Materials Idle Materials Time Transportation
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Mixed Model Repetitive Standard Process Job Shop Full Custom Job Shop Maintenance / Service Contract Fixed Position Production Large Scale Fixed Position Production Planned Repair

Emergent Repair

2002 V2R Consulting Group, LLC

Principles / Tools Production Type

High Volume Repetitive

Waste
Complexity Labor Over Production

Continuous Flow / One Piece Flow Pull Production Takt Time / Pacing Standard Work

Mixed Model Repetitive Standard Process Job Shop Full Custom Job Shop

Five S / Visual Controls Space Energy Setup Reduction / SMED Point of Use Group Technology Defects Line Balancing Level Loading / Demand Smoothing Line of Sight Production Idle Materials Quality Tools / TQM Time Transportation Cross Functional Team Based Mgt Customer Focused TQM Supply Chain Mgt

Maintenance / Service Contract Fixed Position Production Large Scale Fixed Position Production Planned Repair

Materials

Emergent Repair

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Critical Success Factors

Leadership at all levels. Infrastructure for support. Demand immediate results. Think breakthrough revolution, not evolution. Perseverance.

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