Your future .

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Your future ?.
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Mil/Aero high level process

• Business Development (BD)
• Marketing
• Capture teams

Newell's Focus
System Engineering Product Development Prototype L
imited Rate Prod. (LRIP) Testing/Qualification
Project Engineers (PE)
Full Rate Production
Logistics Training Field support
Operations Project Leads (OPL)
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Lean Definition

• A systematic approach to identifying and
  eliminating waste (non-value-added activities)
  through continuous improvement by flowing the
  product at the pull of the customer in pursuit of
  perfection

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Value Stream Defined

• Value Stream The set of all actions required to
  bring a specific product through the three
  critical management tasks of any business

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The Seven Deadly Wastes (MUDA)

• Waste from overproduction
• Waste of waiting time
• Transportation waste
• Over processing waste
• Inventory waste
• Waste of motion
• Waste from product defect

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LEAN ELIMINATING THE WASTE
Typically 90 of Total Cycle Time is Non-value
added!!
RUN TIME
Order Processing, Transport, Storage, Waiting,
Rework, Setup, Reviewing, Idle time, etc.
Total Lead Time
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Value Add - A Customer Perspective
Optimize
Reduce
Eliminate

• Customer Value Add (CVA) Questions
• Does the task add form or feature to the product
  or service?
• Does the task enable a competitive advantage
  (reduced price, faster delivery, fewer defects)?
• Would the customer be willing to pay extra or
  prefer us over the competition if he or she knew
  we were doing this task?

• Business Value Add (BVA) Questions
• Does this task reduce owner financial risk?
• Does this task support financial reporting
  requirements?
• Would the process break down if this task were
  removed?
• Is this task required by law or regulation?

• Non Value Add (NVA) tasks typically include
• Overproduction
• Waiting
• Transporting
• Over-processing
• Inventory
• Wasted Motion
• Rework Defects

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Non-Value Added Analysis

• The end goal is to
• Minimize the Non-Value Added Processes
• Minimize the Business Value Added Processes
• Streamline the Customer Value Added Processes
• Eliminate Waste

Concentrate Here
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Seven Deadly Wastes

• Overproduction devising over-complex solutions
  to design problems because of poorly generated
  concepts, or from chopping the task into bits and
  letting each department duplicate tasks others
  are doing.
• Waiting for other departments to process tasks,
  for unnecessary board approval queuing to use an
  overloaded facility or fighting for specialist
  staff time on urgent tasks.
• Transporting unnecessarily moving bits of
  product development tasks to separate departments
  then having to fetch them back, analyze and
  review their input.
• Over-processing requiring too many approvals
  preparing reports that arent used or of any
  benefit creating features that the customer does
  not want or need.

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Seven Deadly Wastes

• Inventory poorly organized projects that take
  far too long to complete running projects that
  are not commercially viable.
• Wasted Motion searching for information, often
  across departmental boundaries, that has not been
  captured or logically filed.
• Rework and Defects changes to the product or the
  way it is to be manufactured because of
  insufficient input from the right people early
  enough in the process.

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Lean Basics

• Specify Value
• Map the Value Stream
• Pull
• Flow
• Perfection

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Specify Value

• Step 1 Specify Value
• Define value from the perspective of the final
  customer.
• Express value in terms of a specific product,
  which meets the customer's needs at a specific
  price and at a specific time.

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Map the Value Stream

• Step 2 Map the Value Stream
• Identify the value stream, the set of all
  specific actions required to bring a specific
  product through the three critical management
  tasks of any business the problem-solving task,
  the information management task, and the physical
  transformation task. Create a map of the Current
  State and the Future State of the value stream.
  Identify and categorize waste in the Current
  State, and eliminate it!

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Flow

• Step 3 Flow
• Make the remaining steps in the value stream
  flow. Eliminate functional barriers and develop a
  product-focused organization that dramatically
  improves lead-time.

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Pull

• Step 4 Pull
• Real customer demand pulls products through the
  system
• Inventory is waste
• Produce only what is needed when it is needed
• Remove excess capacity or increase the rate of
  customer pull

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Perfection

• There is no end to the process of reducing
  effort, time, space, cost, and mistakes. Return
  to the first step and begin the next lean
  transformation, offering a product which is ever
  more nearly what the customer wants.

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Lean Math
CT WIP / EXITS
PCE VALUE ADD/ ACTUAL TIME
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Cycle Time (CT) Work In Progress (WIP) /
ExitsLittles Law
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Cycle Time WIP / Exits Disney Land

• Think about the lines at Disneyland in March

WIP
5
Cycle Time

Exits
1/minute
Cycle Time
5 minutes

• and then think about them in July

WIP
13
Cycle Time

Exits
1/minute
Cycle Time
13 minutes

• conclusion Fixed Capacity Increased People
  Slower Cycle Times!

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Lean Tools
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Value Stream Mapping
The Value Stream Map permits you to identify
every process flow, pull them out from the
background clutter of the organization, and build
an entire value stream according to Lean
Principles. Learning To See, Mike Rother, John
Shook
Applied extensively through the various team
activities
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Kaizen

• The organized use of common sense to improve
  cost, quality, delivery, and responsiveness to
  customer needs.
• Assembles cross-functional teams aimed at
  improving a process or problem identified within
  a specific area.
• Focused, 3-5 day dedicated event.
• A vehicle for driving quick hit value by
  implementing do-now solutions through waste
  elimination.
• Great project launching tool.
• A vehicle to increased process speed and
  efficiency through employee involvement.

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5 S

• 5S is a process and method for creating and
  maintaining an organized, clean, and high
  performance workplace.
• 5S enables anyone to distinguish between normal
  and abnormal conditions at a glance.
• 5S is the foundation for continuous improvement,
  zero defects, cost reduction, and a safe work
  area.
• 5S is a systematic way to improve the workplace,
  our processes and our products through employee
  involvement.

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Before and After 5S
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5 S (cont.)
Step 1 Sort (Segregate and Eliminate) Clearly
distinguish needed items from unnecessary items
and eliminate what is not needed. Step 2 Set in
Order (Arrange and Identify) Arrange needed
items so that they can be found quickly by
anybody. Step 3 Shine (Daily Cleanup
Process) Create a spotless workplace. Step
4 Standardize (Constant Adherence to the First
Three Steps and Safety) Standardize cleanup
activities so that these actions are specific and
easy to perform. Create and maintain a safe
work environment. Step 5 Sustain (Achieve
Habitual Compliance) Promote adherence to
maintaining a high performance, high quality
and safe work environment. Use visual
performance measurement tools.
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Before and After 5S
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Generic Pull Systems
An improvement over Manufacturing Resource
Planning (MRP) systems
RD043002
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Why Use Pull Systems?

• Generic Pull Systems help to stabilize processes
  to make it easier to apply analysis and
  improvement tools.
• Control and reduce WIP allowing sharper focus on
  problem areas (less stuff to get in the way of
  analysis efforts).
• Control and reduce Cycle Time to generate faster
  feedback cycles on improvement projects (increase
  process velocity and thus cycles of learning).
• The primary goals of a generic pull system are to
  
• stabilize a process (cycle time),
• reduce working capital (inventory),
• reduce lead time (cycle time), and
• reduce costs (overhead and productivity).

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Generic Pull Systems
Generic Pull Systems limit the amount of
Work-In-Process Inventory In Order to Control
Cycle Time
Governing Principle Starts Exits
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Cycle Time WIP / Exits Disney Land

• Think about the lines at Disneyland in March

WIP
5
Cycle Time

Exits
1/minute
Cycle Time
5 minutes

• and then think about them in July

WIP
13
Cycle Time

Exits
1/minute
Cycle Time
13 minutes

• conclusion Fixed Capacity Increased People
  Slower Cycle Times!

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Generic Pull System Defined
Establishing and adhering to the WIP cap is the
key to cycle time reduction
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The Power of a WIP Cap
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Logistics

• Maintenance
• Operators and Technical Manuals
• Training
• Field Service

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Assignment Due at start of class on 01/24/05

• Prepare an MS Project PERT chart containing the
  gates listed below (shown as milestones) in the
  correct order. Size your stages and gates to
  reflect a 9 month schedule from Concept review
  (start) through Production Readiness review
  (end).
• PRR, PDR, SRR, DDR, TRR, COR, CDR, SDR
• Grading based upon the timely completion of the
  assignment with the milestones identified in the
  correct order.