WhatisLean?LeanImplementation11350NorthMeridianSt.,Suite.345?Carmel,IN46032Tele:1-317-818-2430?Fax:1-317-818-2434?AnImplementationServicesCompanyWhatisLean?DescriptionLeadershipImplementationBenefitsAgendaEstablishAwarenessConcerning“Lean”OutlineLeanImplementationFocus&PrioritiesDiscussCriticalWorkstreamstoImplementLeanPortraytheOrganizationtoSustainandFurtherPromoteCI ObjectivesofPresentationWhatisLean?ALeadershipApproach&AManagementPhilosophy&ASetOfTacticalMethods

That,AsACompleteSystem,CreatesandSustains:DecreasingWaste,CostandCycleTimeIncreasingCapacityPotentialIncreasingQualityLowAbsenteeism/VoluntaryTurnoverExtensiveMeasurementofKeyProcessesHighLevelsofWorkerInvolvement,OwnershipandCommitmentImplementingLeanreducesLeadTimewhichisthesinglemostimportantindicatorofourcompetitiveness;withleadtimereductionfollowsdefect&costreductionweseekWhereDoesLeanComeFrom?

Notmerelyonephilosophyortool,butanevolvinginterdisciplinaryknowledgebaseOrganizationDynamicsIndustryBestPracticesInsightsFromMassProductionApproachesGroupDynamicsThe“LowTech”ApproachCurrent“Stateoftheart”LeanConstraintManagement............NewLeanTools(e.g.,20Keys)ToyotaProductionSystem(SMED,kanbans,JIT,TPM,etc.)FordProductionSystemChryslerOperatingSystemLeanEmploysA"Low-Tech"ApproachFocusIntentlyOnTheEliminationOfAllWasteMaximizeProductivityAndEfficiencyFromExistingProcesses,PeopleAndSystemsBefore"Buying"TechnologicalSolutions-Use…CreativityBeforeCapitalOptimizeManual,Low-techSystemsBeforeAutomatingContinuallyPursueImprovement(Kaizen)ThroughTheAggressiveInvolvementOfEveryoneLeanis‘HighTouch&LowTech’EnablingtheInvolvementOfEveryone!TechnologyIsn’ttheAnswerDon’tThinkThatComputerSystems,PCs,E-mailOrThe“Web”WillHelpUsBecomeTrulyCompetitiveTechnologyIsAProductInOurIndustry,NotABusinessProcessTechnologyThatEveryonePossessesBestowsACompetitiveAdvantageOnNoOneAmongTechnologicalEquals,TechnologyIsAConstant,LikeHelmetsInTheNFL(YouSufferIfYou’reTheOnlyOneWithoutOne;HavingOneConfersNoAdvantageIfEveryoneElseHasOne)IfYouLookToTechnologyToSaveUs,WeWillBeCaughtFromBehind,OverrunAndButcheredByTheCompetitionLearntoRecognizetheTypesofWasteFromTaiichiOhno,ArchitectoftheToyotaProductionSystemPEOPLETYPESOFWASTEProcessingMotionWaitingFixingDefectsMakingTooMuchMovingThingsInventoryQUANTITYQUALITYOverproduction/MakingToMuch Tiesupcapital,divertsproductionfromcustomerrequirements,lossofinventoriesTransporting/MovingThings Unnecessarilyincreasesproductiontime,extraWIPUnnecessaryStock/Inventory Tiesupcapital,riskofchangesWaiting Decreasesproductivity,wastespersonnelresourcesUnnecessaryMotion Increasesproductiontime,unnecessaryoperatormotionProcessing Poorlydesigned/incapableprocessesDefects Scrap,rework,returnsLeadtimereductionisachievedbyidentifyingandeliminatingwasteSo…What’sDrivingTheWaste?Distance(plantlayout)Longset-uptimesIncapableprocessesPoormaintenancePoorworkmethodsLackoftrainingAdherence(ornot)toprocessesSupplierqualityWorkplaceorganizationHistoricsupervisoryrolesIneffectiveperformancemeasurementsPoorplanningorscheduling…Whatelse?TeamslearntoworktogethertorapidlyimplementsolutionsforthesebarriersValue-Addedvs.NonValue-Added…fromthetheCustomer’sPerspectiveValue-AddedTransformstheproductorthedocumentationinsomewaythatmeetscustomerrequirements(andhasnotpreviouslybeenattempted)

NonValue-AddedDoesnottransformtheproductordocumentationDoesnotleadtofulfillingaCustomerRequirementReworksapreviousmistakeormisunderstandingWasteisNonValue-Added.Workconstructsthat“servetheconfiguration”(andnotthecustomer)areenablersofwasteCriticalDifferenceFromPastCIInitiatives

PlacesAFocusonNonValue-Added

SegmentTargetingLeadTimeReductionReducingvalue-added(VA)activitiesresultsinonlyminorgainsReducingwasteresultsinmajorleadtimereductionsDon’tmakecapitalinvestmentsonimprovingVAsuntiltheNVAsachieveequilibriumwiththeVAsTypicalcompanyVANVAOriginalleadtimeTraditionalprocessimprovementVANVAMinorimprovementVANVAMajorimprovementKaizenwastereductionBenefitsofLeanTheBenefitsAreThereForTheTakingTheBenefitsAlwaysIncludeIncreasedMarketShare,LoweredCostHigherProfitsAndHappierCustomers(AndShareholders)“Lean”IsTheOnlyAnswerKnownThatProvidesTheseBenefits“Lean”NeverFailsIfYou(R-E-A-L-L-Y)DoItSaying“Lean”IsNotDoingLeanEverySuccessfulBusinessThatCompetesInAnOver-capacityOrPrice-sensitiveMarketIsDoing“Lean”WhetherTheyKnowItOrNotLeanApproachesandTechniques

…ManyToolsareAvailabletoHelpEliminateWasteTYPEOFWASTEWASTEREDUCTIONAPPROACHMETHODDESIREDRESULTStandardWorkWorkplaceOrganizationKaizenWorkplaceManagementJust-in-timeErrorProofingProcessingMotionWaitingWhatYouNeed,WhenYouNeedItHighlyEfficient,SafeWorkAreasWithHighOutputGoodQualityInventoryMovingThingsMakingTooMuchFixingDefectsLevelingKanbanQuickSetupPreventiveMaintenanceDetectionWarningPredictionPreventionCATEGORYOFWASTEPEOPLEQUANTITYQUALITYFOCUSPOINTSWorkBalanceWIPLocation/AmountKanbanLocationKanbanTypesLotSizesChangeoverAnalysisPMAnalysisLayoutLabelingTools/PartsArrangementWorkInstructionsEfficiencyTaktTimeSkillsTrainingShiftMeetingsCell/AreaTeamsVisualDisplaysAppropriateAutomatedAssistanceFixtureModificationsSuccessiveChecksLimitSwitchesCheckSheetsPhotocells,Templates,Etc.CrossTrainingPRINCIPALWORKSHEETSStandardWorkSheet(SWS)TimeObservationForm(TOF)StandardWorkCombinationSheet(SWCS)WorkLoadBalancingSheet(WLBS)KaizenTargetSheet(KTS)KaizenActionSheet(KAS)SWSSWCSWLBSKanbansTableofProductionCapacityByProcess(TPCP)PMSchedulingSheet(PMSS)SWCSErrorProofingActionSheet(EPAS)ErrorProofing“ToDo”List(EPL)SkillVersatilityVisualDisplayJidokaAutonomation20KeysKaizen-oneeffectivemethodamongmanythatengagesPEOPLEand“recruits”theothertoolsKaizen=ContinuousImprovement“Kai”=Small,ContinuousChange“Zen”=OngoingChangeForTheBetterStructured,Focused,Coached,Mandated&RequiredActivityToCompelEveryEmployeeToParticipateInImprovingTheQualityAndEfficiencyOfTheirDay-to-dayMicro-processesNotA“SuggestionBox”ProgramBuildingBlocksofLeanProductionJust-in-timeStandardoperationsMistake-proofprocessingPullproduction&singlepie