Lean Transformation

1. Lean Transformation A Journey Anand Subramaniam

8. Internal Challenges Gap between enterprise resource planning (ERP) and factory floor Incompatible and Inconsistent systems Lack of timely information to make informed decisions Lack of strategy to unify information across manufacturing Lack of funds and/or lack of perceived value

9. Best in Class – Strategic Actions Improve processes that manage the flow of material and information Lean Initiative Optimise performance at Individual plants and factories Drive standards and consistency Across Global manufacturing networks Improve Sales and Operations Planning Processes

10. Improvements from Lean Implementation Adapted from: National Productivity Review, Industry Week, Deltapoint Actuals Total Cycle Time Revenues Inventories Invisible Inventories Blue-Collar Productivity White-Collar Productivity Availability Scrap Delivery Lead Times Time-to-Market Return-on-Assets 20 40 60 80 100 Ranges in % Improvement Best Practices from Actual Cases

11. Lean Transformation – Implementation Implementation What are the key lean principles and practices? How do I transform my enterprise to lean? How do I assess my progress? Process / Checklist Enterprise Level Roadmap Enterprise Transition to Lean Lean Enterprise Self Assessment Tool

12. Lean Transformation - Enterprise Approach Information Technology Certified Suppliers Uncertified Suppliers Warehouse Sales & Marketing Warehouse Customers Customer Service Accounting Engineering Human Resources Factory

13. Enterprise Level Roadmap – High Level Entry / Re-entry Cycle Adopt Lean Paradigm Decision to pursue Enterprise Transformation Enterprise Strategic Planning Long Term Cycle Focus on the Value Stream Develop Lean Structure & Behavior Create & Refine Transformation Plan Focus on Continuous Improvement Implement Lean Initiatives Initial Lean Vision Lean Vision Lean Transformation Framework Short Term Cycle Detailed Corrective Action Indicators Outcomes on Enterprise Metrics Environmental Corrective Action Indicators Enterprise Level Transformation Plan + Source: MIT – Lean Aerospace Initiative Lean Impact

14. Enterprise Level Roadmap – Detailed Scan the environment Segment the market Define leadership requirements Create leadership structures Define policies, objectives, targets and budgets Communicate! Communicate! Communicate! Play catchball with deployment teams Play catchball with action teams Use reliable, scientific methods at all levels Discover/correct performance variances Perform corporate diagnosis with top Champions Assess/analyse performance Capture learning and make it replicable Re-vision your strategy -- again Renew your business – in real time Use advanced planning methods Celebrate Success! Mission Statement Values Statement Vision Statement P/O Matrices Focus Team Charter Kickoff Promotion P/O Matrices Deploy- ment Plans P/O Matrices Action Plans Plan Summary CEDAC P/O Matrix Phase II: Pilot Phase I: Plan Phase III: Deploy Phase IV: Integrate Phase V: Excel business renewal strategy re-vision vision deployment implementation/adherence strategy re-vision Create mission; establish values Envision the future Study Missions Market Studies Product/ Market Matrix Technology Roadmaps Corporate Diagnosis Develop- ment Plan Relation- Ship Map Organi- graph Target/ means Analysis Finalise policies and budgets Target/ Means Analysis Target/ Means Analysis CEDAC JIT TPM CE Newsletter Website Progress Tables Site Visits CEDAC 5 Minute Meetings Weekly Meetings Monthly Meetings Study Missions Creative Thinking Bottom up Planning Strategic Scenarios Game Theoretic Models analysis and reflection business renewal  2003 Productivity, Inc. adC IP0201wc

15. Example - Enterprise Level Roadmap Source: Productivity Inc.

18. Lean Enterprise – Self Assessment Source: MIT – Lean Aerospace Initiative Why Communicate “lean” enterprise-wide What A “lean” vision How Learn from successful “ lean” implementations Who The Enterprise Leader When First step Where Enterprise-wide Information Technology Certified Suppliers Uncertified Suppliers Warehouse Sales & Marketing Warehouse Customers Customer Service Accounting Engineering Human Resources Factory

21. Example - “Change - Checklist”

24. Example - Value Stream Map

25. Lean Building Blocks Value Stream Mapping Continuous Improvement Performance Measurement Performance Management Quick Changeover Standardised Work Batch Reduction Teams Quality at Source 5S System Visual Plant Layout POUS Cellular/Flow Pull/Kanban TPM POUS – point of use storage Source: Techhelp

26. Waste Elimination Source: John Willey & Sons - 2009 97% NVA 3% VA Most Process Improvement Teams Attack this . . . . . . Achieve this 97% NVA Typical Value Stream Ratio Value-Added (VA) to Non-Value-Added Activity (NVA) . .and Ignore this Source: C. Fiore; Lean Strategies for Product Development , ASQ, 2003